Sell Side Process
The five phases in this graphic are the significant milestone phases delivered in our process.
Penn Valley Group charges a small monthly retainer fee beginning with the Initiation Phase and continuing until the closing is complete. As a unique offer in the market, we do not require a commitment to continue services and pay the retainer fee other than thirty days notice if your business plans change or you decide to move in a different direction. Please refer to Penn Valley Group’s Engagement Letter for specific agreement terms.
Seller Representation
Penn Valley Group’s sell-side strategy requires considerable effort, time, and detailed preparation to ensure maximized value is achieved for our clients. Our methodology typically yields five or more interested buyers for a business, consistently yielding more significant value for owners. This deal value is measured by pure dollar value and key terms and conditions equally crucial to our owners. Leveraging multiple interested buyers allows sellers to compare offers and negotiate for the most desirable terms and conditions and sales prices that meet their objectives.
Engagement Approach
Penn Valley Group performs its services on a retainer basis with a success fee upon closing a transaction. Our Sell-Side Process methodology, which has a 100% success rate over the last twenty years, usually requires six months from start to closing.
Seller Representation Activities provided in the Exclusive Sales Timeline process
Initiation Phase
- Establish Team
- Discuss and define the objectives of the process
- Begin internal due diligence
Preparation Phase
- Internal Due diligence
- Establish a virtual data room and begin populating it with pertinent information
- Preparation of confidential memorandum, business snapshot, and executive summary
- Identify the full range of potential buyers
- Finalize confidential memorandum & marketing materials
- Select potential buyers to be contacted
- Confirm objectives, strategy, and process
- Send Executive Summary to potential buyers
Marketing Phase
- Contact parties
- Arrange Confidentiality Agreements
- Distribute confidential memorandum and marketing materials once Confidentiality Agreements are executed
- Review and analysis by potential buyers
- Respond to selected due diligence and process questions
- Schedule conference calls with the management team
Detailed Due Diligence Phase
- Evaluation Period by potential buyers
- Development of detailed indications of interest
- Outline potential deal structures
- Site visits
- Management presentations
- Review of indications of interest (LOI)
- Selection by principals of purchaser based upon valuation, fit with the company, and detailed, documented, and binding proposals
- Fully execute LOI
- Begin Buyer due diligence
- Open access to virtual data room
- Development of binding intentions
Negotiating Phase
- Ongoing due diligence
- Negotiation of definitive agreements
- Negotiate employment agreements, if appropriate
- Fully execute all agreements and distribute funds