FAQ

Selling your business is a complex undertaking. Mergers and acquisitions (M&As) throw up a plethora of challenges yet many well informed business people are unaware that there are resources available to successfullynavigate what for most owners is the largest financial transaction of their life. sbLiftOff stands ready as your ethical advisor and support system so you can sell when the time is right, allowing your company to transition to new ownership and you to lift off to your next adventure in life.

Our clients come to us with innumerable questions, ranging from industry-specific inquiries to general M&A information. We’ve created this FAQ to provide answers to some of the most common questions we receive.

How Much Is My Business Worth?

The actual answer to that question is that your business is worth what the market says your business is worth. While sbLiftOff can give you a rough calculation of what your business would likely trade for each buyer has their own reasons for acquiring a business. As a result, one buyer may find more strategic value in your business than the next buyer. Matching the right buyer pool with your business is an essential step to really knowing what your business is worth in the market today. sbLiftOff is in the market everyday and has a highly developed sense of what buyers are willing to pay, and how they are structuring their offers.

sbLiftOff looks at your company and its financials the way these buyers would. We do a thorough review of your operation. We consider  everything from recurring revenue to contract backlog, churn rates to technology stack valuations, IP and more. Lastly, we factor in buyer appetite – how interested are buyers in acquiring companies like yours? What does the future hold for your industry and your company? We do not put a price on your company – rather we let the market tell us what it thinks your business is worth. Sometimes the market can surprise you.

How Long Does the Process Take?

It is an axiom in M&A that time and surprise kill deals. As a result, sbLiftOff tries to run the most efficient process possible. As a general rule, most business owners can expect their deal to take about nine months, but depending on the specifics of the business and buyer requirements, the time can vary. We have closed deals in three months, and taken two years to close a very successful process.  Some factors that can extend the sales process are:

  • Multiple M&As occurring under one business.

  • Financials in need of improvement

  • Due diligence findings that need resolving.
  • Unforeseen changes in contracts or regulations

While time is of the essence, sbLiftOff will stay by your side, even working on post-close issues, as a trusted advisor.

Do You Only Serve GovCon and Software Industries?

No — our team members bring years of experience facilitating transitions in a variety of industries. Our services are especially suited for companies within these industries:

  • Cybersecurity and data management
  • Information technology
  • Logistics and supply chain management
  • Human capital
  • Facilities management
  • Intelligence Community

Do I Need to Hire Someone to Sell My Business?

Yes — everyone should have an experienced sellside advisor to guide them through the sales process. In fact, multiple studies, including those by the National Center for the Middle Market – a think tank – have found that many midmarket deals don’t close because there was no M&A advisor involved. In addition to an investment banker – that’s what M&A advisors are called – you will need an M&A attorney as well as the involvement of a finance professional. While sbLiftOff serves as the quarterback of your M&A team, leading the deal and working to both find the buyer, structure the deal, and close it, you will need to anticipate the professional services costs of your M&A lawyer and any finance help you require (generally a company’s CFO can handle the finance role).

When you choose an M&A advisor it is critical to choose someone with deep industry expertise. Otherwise your advisor will not understand your industry market or have contacts with the best buyers out there. When you choose sbLiftOff we deliver both industry knowledge as well as an extensive buyer network. We also guide you through each stage of the transition step-by-step, handling every part of the deal, quarterbacking your professional services team,  and ensuring your sale goes as smoothly as possible.

What Are the Steps for Selling My Business?

As you prepare to sell your business, you can expect to work with sbLiftOff on:

  • Valuation of your company.
  • Collecting records and important documentation into a dataroom.
  • Ensuring confidentiality
  • Creating a powerful story that can drive sales strategy.
  • Considering buyers we want to reach out to and giving your ok.
  • Making decisions we bring to you regarding buyer offers
  • Negotiating your deal.
  • Closing the sale and starting the transition.

How Do I Know When the Right Time to Sell Is?

The right time to sell will look different for everyone, and sbLiftOff can help you complete an analysis that shows you whether now is the time to act. We are more interested in helping you get the most value for your business rather than pressuring you to sell right now. Timing has a lot to do with understanding your business trajectory as well as understanding market conditions. We are happy to advise you on best timing. Businesses in the best position to sell are generally:

  • Experiencing stable profits or revenue growth.
  • In a currently expanding industry.
  • Operating efficiently without excessive management interference.

A personal indication that it may be time to consider your next steps is if you plan to retire or move on from your position within the next couple of years. If that is the case for you, it’s best to start exploring your options early. The transition can take some time to complete, and the earlier you start, the less chance you will feel rushed or burned out when it is time for you to follow through.

Find All the Answers With sbLiftOff

Our team is focused on helping you lift off successfully to your next goal in life. Selling a business is a major life transition., We, provide you with the comprehensive support you need to  facilitate a smooth, stable deal process. Not seeing answers to your specific concerns? Contact us directly to learn more and get started with our M&A advising services today.