Sales Process

Individualized Plan to Clearly Separate You

At Mid America we are passionate about delivering maximum value for our clients and our unique and proven approach for each client reflects this. Our approach to maximizing shareholder return is different with every engagement, each being tailored to your exact needs. We immerse ourselves in a select few projects at any one time to achieve the right result in a sometimes crowded market:

  1. Sector knowledge
  2. Understanding seller’s motivations
  3. Articulating business value
  4. Strategically motivated purchaser
  5. Competitive environment

Detailed Sector Knowledge

The starting point for every project is detailed sector knowledge.   Our clients are experts in their fields but it never hurts to have sector statistics such as price multiples, comparables, and recent transactions within your space.  Although many skills associated with a divestiture apply to any industry, understanding the competitive dynamics and positioning is a fundamental strength and clearly differentiates Mid America.

Articulating Business Value

We then implement the recommendations appraisers make. We market the business proactively focusing on the strategic reasons for purchase that frequently command a premium price.

We work closely with you to capture the magic of your business and put together high quality sales material. As with many products and services, presentation can make a considerable difference to enhancing value and maintaining interest. Our documentation and presentations are produced using professional editors.

The most important document is the Marketing Package – this key document focuses on the benefits of the vendor’s business and assists the generation of additional potential acquirers. It covers company history, ownership activity, customer base competitive advantages and future potential as well as many other key areas.

Strategically Motivated Purchaser

Turning over the keys to a new buyer is important for many reasons. Mid America knows that you care about the fit as much as you care about the price.

We know that to achieve a maximized sale price it is necessary to generate strategically motivated potential acquirers. If you negotiate well with a choice of strategically motivated buyers, then you will almost certainly receive a diverse range of bids.

We identify potential buyers from various databases and our comprehensive network. The nature of many buyers is often a surprise to a seller. At this stage it is vital to look at complimentary buyers (not just competitive) and possibly from the entire Midwest.

Our consultants contact, in strictest confidence, every prospective purchaser. We introduce the initial idea without telling them your company name.

The objective is to generate face-to-face meetings with multiple prospective purchasers to create an atmosphere of competition. Each prospective buyer will be asked to sign a non-disclosure agreement before proceeding. There are no valuations at this stage.

Proactive effort is critical at all stages in the process but is probably most important here.

Competitive Environment

Key competitors and complimentary businesses generating interest and potential acquirers which will form the essential competition required to maximize the offer from the initial potential acquirer.

There is one factor that influences salability more than any other and that is bidder competition. Having a choice of buyers, in effect ‘creating a market’, is the single most important issue that a vendor can address.

Not only must you find a choice of acquirers, but they must also be strategically motivated and financially strong. It is essential that this matter is not compromised. Therefore, you will have to contact many potential acquirers and this will dramatically influence the sale. Failure to address this will result in a poor deal for you.

Due Dilligence

Mid America continues to encourage the negotiations between buyer and seller and their advisors. We encourage both parties to fully understand the due diligence process that ensures the buyers know that what they believe they are buying is what they really are buying.

When we market an opportunity, the business purchaser knows that the seller still has alternatives, because choice—or perceived choice—impacts on the speed and price of the business sale. We therefore work hard to get you the best ‘deal’ possible.

Getting to agreement on a deal is only half the story. There are many things which can either stop or delay a transaction in due diligence. Being prepared for due diligence and retaining control throughout the process is key and differentiates Mid America.

For more information on tips for selling your business, please view this article from the Better Business Bureau:www.bbb.org/us/article/tips-on-selling-your-business-542

Why Use An Intermediary

Using an Intermediary to give ideas and advise on the sale of a business has a number of distinct advantages:

  • Demonstrates to an investor clear intent – serious
  • Advisor will ensure business is as prepared as possible – risk reduction
  • Provides the necessary internal focus and prevents drift
  • Allows management team to focus more on the business (although do not underestimate the time involved in running a process)
  • Provides scale – approach many buyers to solicit interest at once
  • Helps retain control, timeline and dictates pace
  • Advisor will help negotiate best terms and improved chance of competitive bid process
  • Network and relationships can save time and likelihood of success by quickly talking to the right people or organization
  • Experience will improve chances of success – particularly in difficult climate