How Armor Capital Can Help You Successfully Sell Your Business

How Armor Capital Can Help You
Successfully Sell Your Business

Looking to sell your business in 2 years? Start preparing for it now!

Many business owners underestimate the preparation and time needed for a company to sell their business. It may take up to one to two years between exploring options in a company sale and a successful closing of such a project, and the duration is dependent on many factors. Below we provide guidance on key steps in a sell-side M&A process from a business owner’s perspective when working with Armor Capital:

Phase 1 – Exploration

An initial meeting would be held with our M&A experts to discuss your motivation and objectives of selling your business, as well as your company’s business model, industry landscape, financial performance & standing and organizational structure. An initial estimate of the value of your company may be provided depending on the quality of the information. We may also provide you with a roadmap and explain your own role & responsibilities during such a process.

Phase 2 – Preparation

Subsequent meetings will take place to identify opportunities that would maximize the perceived value of your company in the eyes of potential buyers. A more in-depth analysis will be conducted on your company’s strengths & weaknesses, market positioning, key employees and corporate strategy and financials. Armor Capital will use all relevant information to draft the marketing materials for potential buyers, so that you can focus on your business and, if required, take initiatives to prepare the business for a sale.

Phase 3 – Approach

Now that we have the marketing materials, it is time to market the opportunity to investors! Armor Capital will gather a list of potential buyers to approach and discuss it with you. We will identify key decision-makers within those companies and test their interest by sharing anonymous preliminary information about your company. Interested buyers will be requested to sign a non-disclosure agreement (NDA) before Armor Capital shares further information. We will organize introductory meetings between you and interested buyers, and prepare you for an excellent presentation of your company and a well-handled Q&A. 

Phase 4 – Engagement

After initial discussions with various buyers, Armor will assist you in selecting potential ones that are not just a good match but, more importantly, serious bidders. Using a highly secured virtual data room, further detailed information may be shared with 2 to 3 interested parties. In the meantime, you will be briefed by us on key commercial terms in a Letter of Intent (LOI) that buyers may provide you. The objective is to sign this letter with one of the bidders. 

Phase 5 – Final Negotiation and Closing

Although key commercial terms are usually addressed in the LOI, they may not always be finalized until the prospective buyer has further analyzed your company’s financials, commercial positioning and legal risks, which is done through third parties.  Armor Capital will seek to minimize the burden that this analysis may pose on your daily operations and staff.  Then, we will further coordinate the drafting of the final transaction documents with legal advisors and ensure that you are satisfied with the final terms.