Seller Services

The Seller services that we provide include:

  • 1. Financial Analysis and Recasting
  • 2. Business Analysis
  • 3. Market Analysis
  • 4. Development of Blind Profiles
  • 5. Preparation of Confidential Memoranda
  • 6. Selection of Strategic and Financial Targets
  • 7. Marketing of the Opportunity
  • 8. Initial Engagement with Targets
  • 9. Vetting of Prospective Buyers
  • 10. Evaluation of Letters of Intent
  • 11. Management of the Auction Process
  • 12. Deal Negotiation and Structuring
  • 13. Liaison with Legal and Accounting Teams
  • 14. Due Diligence Management
  • 15. Closing

Selling your business for the best value is a well thought out and a structured process that requires expertise to present the business in the best light, to source the right buyer, negotiate the best price and structure, and work through the complex process of coordinating legal, accounting and due diligence experts to ensure the deal closes.

The steps we follow for a business sale can be summarized as below:

  1. 1. We try and understand your business and if needed, do our own due diligence, before each engagement to ensure that we are the right partners for your business.

  2. 2. We interact with you and your top management (who are privy to the intention) to understand the motivations for selling, the current profitability of the business and its potential in the hands of the new management. This enables us to prepare a well balanced pitch for your business.

  3. 3. This also allows us to make a preliminary assessment of the value of the business. To accomplish this, we sometimes also review the financial and other information about your business and compare it to industry information. We will discuss with you, both our valuation assessment and our perceptions of what you can expect when we take your business to the marketplace. The valuation of a business is no different from the pricing of a product and it is the price that a willing buyer would pay depending on the value that he perceives in the acquisition. The valuation that one can get will depend on two factors:

    • a. The state of the industry and its prospects, and
    • b. The type of the likely buyer (financial buyer or a strategic buyer)

  4. 4. The next step is to develop a Blind Business Profile (preserving your business’s anonymity and protecting your relationships with customers, suppliers and employees) for the business to be sold. It is important to make this document as complete as possible, because, in our experience, it will play a key role in developing the interest of the seller in making an offer for your business. This profile summarizes key information about your business which can be provided to potential buyers in order for them to provide a preliminary indication of their interest in the business. This will include
    • a. an overview of the history of the business, and
    • b. key financial and operating information about the business.

  5. 5. We target scores of potential qualified buyers worldwide after taking your approval to approach them to generate interest. Also a prospective buyer is given the business profile only after we have a signed Confidentiality Agreement with them.

  6. 6. We bring multiple potential buyers to the table to compete for your business to ensure that you get the best possible outcome. Competition always benefits the seller.

  7. 7. We will use our experience to help you get the best possible price and contract terms possible, given your situation. Generally, we handle the direct negotiations with the buyer and keep in very close contact, seeking your input and approval for each major issue. The negotiation phase actually lasts until the sale is closed subject to due diligence of your business and books of accounts by the buyer.

  8. 8. Due diligence is the process by which the buyer investigates your business in order to make a final decision to proceed with the transaction. It is crucial that this process go smoothly. We will work with you to make sure you are ready for the seller’s representatives to conduct their investigation. We will be available, either in person or by telephone, during the seller’s due diligence to help resolve any problems or answer any questions. Any surprises that are uncovered during this process will add to the complexity of the transaction. Therefore, we work with you in advance of due diligence to make sure we have prepared the seller for what to expect during due diligence.

  9. 9. After due diligence, the buyers will submit a draft purchase agreement. We will work with you and your attorneys and accountants during the process. We have a good sense of the market and what is reasonable to expect in contract terms and can help guide you through this process.

  10. 10. We actively manage the process right through to the closing. We will assist in closing the transaction, making sure you are prepared with required documents and schedules. We will also assist in resolving any post-closing issues with the buyers.

If you are a prospective seller, we invite you to contact us to discuss your requirements or send us an email at contact@singularity.in

Buy/Sell Businesses