Stonebridge's Process and StrategiesWe offer a thoughtful selling process, hard work and experience.
We make a difference. Value is determined by a company’s financial operations and outlook, the income stream and balance sheet strength, the company’s ability to utilize the optimal amount of leverage and the intangible assets. After this, a well-run selling process lead by a capable person can add another five to fifteen percent!
Stonebridge understands a company’s value components. In one transaction where we made a huge difference, the owner wanted $11 million for the business. Stonebridge saw how leverage could be used responsibly and sold the business for 64% more. We understand value. We know where to find extra value in most businesses. Experience and process increases business value.
We Set Clear Objectives and Control the Process to Enhance Value
When selling a business there are many things to manage. Stonebridge is diligent in developing a group of qualified candidates who possess the financial strength and shared vision to conclude the transaction to maximum value on the most favorable terms. Just as important is advocating the opportunity to prospective buyers. We take the time to put together supporting documentation that tells the story.
We understand the process and how to keep it moving along, from the initial contact, managing the meetings, the letter of intent, the critical due diligence process, negotiating the asset purchase agreement and closing the transaction in a timely manner. Experience, a solid financial background and good communication skills keep transactions moving forward to the closing.
Our Teamwork Approach Is Essential to Concluding the Transaction
When making the largest financial decision of a lifetime, owners need an experienced professional to manage the process. Stonebridge fills this role, maintaining close communication with the owner regarding the engagement progress. We review all options and develop solutions to obstacles that will develop.
We work closely with the company’s key advisers, including accountants and attorneys to keep the transaction on schedule and moving forward with no surprises. Leading in the sale of the business is a role we take very seriously. We are convinced that hard work and thoughtful action translates to good prices.
We Engage with the Best Buyers for a Successful Engagement
Stonebridge conducts a thorough and active search to locate qualified buyers who view the company as a valuable strategic acquisition. During the final screening process, we work closely with the remaining buyers to investigate and isolate the one buyer who can best meet the client’s selling objectives and see the strategic opportunity. The acquisition must be valuable to both buyer and seller to close the transaction.
Value lies in the detail. Often when beginning the selling process, the buyer has not been identified by either the client or the intermediary. We find it critical to maintain an open selling approach that doesn’t rely on databases as the only source of leads. Rather we pride ourselves on doing the hard work of investigating the industry and locating those buyers who we can develop into strong buyers. Locating and negotiating with the ‘right’ buyers maximizes the closing proceeds.
We Understand Value Which Leads to Stronger Negotiations and Price
Gaining a comprehensive understanding of a clients business and its relationship to industry peers enables Stonebridge to establish a valuation range. We are aggressive but practical in pricing expectations. Discussions on price and viable options are explored.
Financial statements are restated to reflect the company’s true earnings potential. We challenge ourselves to find that one buyer who can justify moving beyond the upper-end of the valuation range. We bring a valuation expertise to the transaction-side of our business, which is valuable.
Understanding how value creation drives net cash flow and positions the balance sheet for the business to thrive, is beneficial when negotiating the purchase price. Having detailed appraisal knowledge and the ability to articulate specific business value criteria, helps us in achieving our clients selling objectives.
We Resolve Challenges and Move the Transaction Forward
Our experience in resolving differences and structuring transactions keeps the buyer and seller focused on their mutual objectives, a definitive purchase-sale agreement. We facilitate communication and lead negotiations. Our integrity, accuracy and professional ability enables parties to close the transaction with no disruption to the business.
We have been in many situations that calls for cool and quick thinking. Transactions can get derailed from misunderstandings. We understand the personalities and how to organize and run meetings to get the best out of the meetings. Leadership is critical, especially at the 'right time' to keep the transaction progressing.
Our Diverse Expertise Creates Additional Transitional Strategies
Structuring the transaction to meet the unique needs of shareholders is essential to every engagement. Stonebridge offers a broad range of business and financial expertise. We address the complex issues such as retained equity positions, earn out payments, non-compete arrangements, working capital adjustments, hold-back clauses, inventive-based compensation for key management and other key transaction matters.
When selling your business, the final measure is how much cash goes into your account at closing, and stays in the asset column of your personal balance sheet. Taxes can impact sale proceeds. We have relationships with some of the best tax-strategist to bring in at the right time should you decide to review this option.