Great Article - Describing the Sales Process
Below is a great article that explains the sales process for an sell side advisory firm. May be helpful if a friend or family member ask you what you do...
Selling a Business for an ‘Outrageous’ Price
By Josh Patrick
Step 1: Start with a big funnel.
Clayton Capital started the sales process by throwing a wide net. It sent out letters of inquiry to 4,000 private equity groups and 400 buyers. Of those contacted, 110 signed nondisclosure agreements so they could take a look at the details of the offer. From the 110 that showed interest, 50 had conversations with Clayton Capital. Of those 50, 15 were allowed to have conversations with the seller’s management. Ten companies submitted offers.
Step 2: The controlled-auction process.
When you identify 10 companies that are interested in buying and qualified to buy a business, a competent investment banker will enter into what is called a controlled auction process.
This process brought three offers that were significantly higher than what Mr. Short had prepared his buyer to accept. At that point, price was no longer the issue; now it was about negotiating the terms of the sale.
http://boss.blogs.nytimes.com/2014/10/27/selling-a-business-for-an-outr…
