So, you’ve been introduced to the development phase of selling your company. We now bring you Part II of our mini-series: the marketing phase. At this point in the process, you should know your company like the back of your hand, and your Confidential Information Memorandum should be complete. It’s time to go to market and meet your future match. Let the games begin!

Not to say this is a game – we’re referring to the back-and-forth that occurs as you search for and ultimately select your buyer. To fall back on our tried-and-true analogy – it’s like dating. Remember those notes you used to pass to the cute kid in class? Something along the lines of: “Do you like me? Check yes or no.” Well, things haven’t changed much since elementary school.

With the CIM in our back pocket, it’s time to take the owner out on the town for the “dating” phase. We first present an anonymous snapshot of our client, known as a “Teaser,” to interested suitors. Those that demonstrate serious interest and execute a Confidentiality Agreement will receive the Confidential Information Memorandum, which reveals the company’s identity and details about its history, operations, management, financials, etc (buyers still don’t get to meet our client, though).

Soon we will ask buyers to get more serious and submit an Indication of Interest (IOI). This is non-binding, non-exclusive and includes price, deal structure, and a few key terms. We select the top candidates and finally allow the buyers and seller to “mingle” during management visits. The relationship eventually becomes exclusive when the seller selects “the one” and we negotiate a Letter of Intent, which when signed is like the “engagement.”

With closing (“the marriage”) as the final step, other parties such as attorneys and accountants get involved to facilitate due diligence and ensure everything is in order. If all goes to plan, the transaction closes and the celebration begins. There is a Motown band, a cake, champagne, dancing, and the occasional inappropriate toast. Okay, we made up some of that; but we have seen inappropriate toasts before. And dancing. And champagne. And cake. Okay, they really are pretty similar…