ACT Capital Advisors Announces Its Six Steps to Selling a Business

Online, May 10, 2013 (Newswire.com) - There are essentially six basic steps entrepreneurs and business owners can expect to walk through when engaging ACT Capital Advisors to sell their business. These steps ensure the company is completely prepared with all the correct documentation before entering the market. ACT is very strategic in its method for creating seller's expectations in order to prevent from letting emotions cloud the vision of what is to be accomplished. These six steps include:

1. Introductions: This gives the business owner and the investment bankers the chance to meet and get comfortable with the way the other party works. The idea is for both parties to understand the expectations and process as both parties will be working together throughout the next 12 to 18 months.

2. Introductory Analysis: After the first meeting ACT will typically conduct an unofficial valuation to give the owners a reasonable range of what the business will sell for. The reason this is unofficial is to leave the market open to set the acquisition price. ACT does not want to lose out on potential gains by setting a value much loser than what the market actually is willing to pay for the business.

3. Marketing Preparation: Once the sellers have engaged ACT to represent the company in the sell of the ownership, ACT begins by exploring those key points that will make the company most attractive to the buyers in the market. It then highlights those points in the Confidential Marketing Memorandum and Teaser Letter as the most attractive point to draw in potential investors. These key points include products, services, financial standing, industry, and SWOT (Strengths, weaknesses, opportunities, threats).

4. Marketing: ACT takes a much more aggressive approach in the marketing campaign then a traditional business broker. This is done by not only listing the business on the appropriate business for sale websites (i.e. Bizbuysell, Bizquest, AxialMarket, ect.), but they also identify the most likely buyers an make an active approach on contacting those buyers directly to present your business in a confidential way. This idealistically brings multiple buyers to the negotiations table.

5. The Right Buyer: Before the buyers are informed and brought to the negotiations table there needs to be a prequalification screening done. This done through ACT research tools and analysts that ensure the buyer has the capacity to close a deal and is not just a random individual off the street.

6. Auction Time: The next step is to create a bidding war among the various buyers. If there is only one buyer the buyer will have strategic leverage in negotiating the price downwards. On the flip side, if there are multiple buyers the ACT can create some back and forth that will truly drive the value of the business northward.

7. Due Diligence and Close: Now that the company has found the right buyer and the offer has been accepted the buyers will begin preforming the due diligence. As the sellers are notorious for letting emotions obstruct this process ACT is expert at making sure the buyers get the information needed to close the deal.

These steps are the basic and simple process business owners can expect to walk through when looking for an exit strategy. For more information on the company follow the link under the company's contact information.