Selling your business is one of the most significant decisions you’ll make as an business owner. It’s not just about securing the best price; it’s about finding the right buyer, ensuring the process is smooth, and achieving the best possible outcome for your legacy, employees, and future. Whether you’re planning an exit in the future or about to appoint an advisor, understanding the key stages of a typical M&A process is essential. We break it down into three key phases: Preparation, Marketing, and Completion.

Preparation: Setting the stage for success

Preparation is the foundation of any successful M&A transaction. Think of it as putting your house on the market – before inviting potential buyers, you want everything to look its best. For businesses, this stage is even more critical. Here’s what it involves:

Strategic Planning

• Why are you selling? Are you looking for a clean exit, or do you want to retain a stake? What’s your ideal buyer profile – strategic, financial, or perhaps a family office? Clarifying your objectives upfront helps shape the entire process.

Business Readiness

• A forensic deep dive into your company’s financials, operations, and market positioning is vital. The goal is to understand your businesses unique strengths and selling points and identify any potential bidder concerns and address them early. Buyers will scrutinize everything, so transparency is key.

Valuation

• An independent and professional valuation ensures you have realistic expectations and minimises surprises from the outset. Springboard perform a detailed valuation analysis for every client, taking into account not just financial performance and growth potential but also market sentiment and important intangibles like brand reputation.

Preparation of Marketing Materials

• High-quality marketing materials, such as a Teaser (anonymous overview of your business) and an Information Memorandum (IM), are prepared during this phase to entice buyers into the process and major on the key highlights of the business. These documents must strike a balance between being detailed enough to attract serious buyers and protecting sensitive information.

Buyer Identification

• Springboard will run a detailed market mapping exercise and create a tailored list of potential buyers across two key categories, strategics (companies in your industry) and financial (private equity firms or investors). Outside of our detailed market knowledge, it’s Springboard’s extensive network and regular engagement with key acquirers that ensures each buyer list is tailored, accurate and appropriate.

Marketing: Engaging with potential buyers

Once the groundwork is laid, the focus shifts to identifying and engaging with potential buyers. This stage requires precision, discretion, and robust communication skills.

Outreach

• Initial, anonymous calls are help with potential buyers following which the marketing materials are shared, as necessary and under strict confidentiality agreements. Following a review of the marketing materials, interested parties are then invited to discuss the opportunity with Springboard and, if intrigued, submit an offer for the business.

Offers and Negotiation

• Non-Binding Offers (NBIs) are submitted, detailing the terms of the proposed deal. Springboard will help evaluate these offers, focusing on both financial and non-financial aspects, such as deal structure, cultural fit, and long-term commitments. It’s typical to receive an initial NBI from a broader number of interested parties, following which a handpicked shortlist will receive further information and access to management to allow them to fully assess the opportunity and find an updated Final Offer.

Management Meetings

• Serious buyers will want to meet you and your team and hear your plans for the businesses first hand. These meetings are pivotal. It’s not just about the numbers; it’s about a meeting of minds, an agreement on growth strategies and relationship building. Be prepared to articulate your story, showcase your team’s strengths, and answer tough questions.

Completion: Closing the Deal

The finish line is in sight, but the final stage is often the most intense. It’s where deals are won – or lost.

Due Diligence

• Buyers will conduct detailed due diligence to verify all aspects of your business. This can be extensive, covering financials, legal contracts, customer relationships, and more. The detailed preparation work performed at the outset of the process will start paying dividends here – having an advisor who is organized and responsive is crucial.

Negotiating the Sale and Purchase Agreement (SPA)

• The SPA is the legally binding contract that finalizes the transaction. Springboard will work with your legal counsel to negotiate these terms to protect your interests while ensuring the deal moves forward.

Regulatory and Tax Considerations

• Depending on your industry, regulatory approvals may be required. Additionally, structuring the deal tax-efficiently can significantly impact your net proceeds. Expert advice here is invaluable. At Springboard we work with a trusted network of experts we would be delighted to introduce you to.

Completion Day

• The moment of truth! Once all conditions are met, funds are transferred, and ownership changes hands. It’s a cause for celebration – and perhaps a glass of champagne.

Why Partner with Springboard?

The M&A process is complex and often emotionally charged and is best navigated with expert advice. Springboard has an extensive track record in guiding owner-managed businesses through M&A transactions, providing the expertise, objectivity, and hands-on support needed to navigate every stage seamlessly. From preparing your business for sale to negotiating the finer points of the SPA, our role is to maximize value while minimizing stress.

Selling your business is much more than a transaction – it’s a transition. By understanding the three key stages of the M&A process and working with experienced advisors, you can approach this journey with confidence, knowing you’re in capable hands. Whether you’re ready to take the first step or simply exploring your options, now is the time to prepare for the future you envision.

Ready to discuss your M&A ambitions? Let’s talk.