PHASE I: Business Evaluation & Valuation
A thorough evaluation and valuation of the business is the first step in the sale process. It begins with a site visit and client meetings, and concludes with the submittal of a comprehensive written report which includes our estimate of value.
Mid-America's fee for completing the Business Evaluation & Valuation represents excellent value as the analysis and report typically exceeds the quality of
reports from firms that charge tens of thousands of dollars more.
Representative Scope of Work:
- Site Visit. Multi-day site visit.
- Management interviews regarding historical and forecast performance.
- Review historical performance and financial data. Determine appropriate
recast items in order to better reflect the true business potential.
- Review management's development plan and supporting documents.
- Assess competitive market position.
- Develop a set of pro forma financial models of sufficient detail to utilize the discounted
cash flow valuation method.
- Written Report. Written report containing the following sections: Executive Summary, Marketing
Analysis, Operations Analysis, Financial Analysis, Growth Plan and Valuation (including pro forma financial models).
PHASE II: Marketing Phase
The comprehensive marketing program used by Mid-America to find the best possible buyer begins with finalizing your objectives and a realistic sales price, and ends with the execution of a letter of intent. The Marketing Process is summarized by the exhibit (right).
Preparing to Market:
Mid-America finalizes the following:
- Finalize your objectives and a realistic sales price that can be supported by the Business Evaluation and Valuation.
- Complete a detailed selling memorandum (Confidential Descriptive Memorandum)
that describes your business and supports the target valuation.
- Prepare a one page executive summary (Confidential Business Profile).
Strategic Marketing Campaign:
Mid-America customizes a marketing campaign and manages the entire marketing process
including buyer communications, buyer visits, and buyer negotiations.
- Buyer Identification:
Mid-America uses its knowledge as well as our client's knowledge to
develop a list of strategic buyers who would have economic,
operational, or geographical synergies. We also identify and qualify other prospective purchasers.
- Bid Solicitation & Analysis:
We contact the decision maker at each prospective purchaser, forward a copy of the Confidential Descriptive Memorandum, manage communications, coordinate due-diligence, and solicit bids from interested parties.
- Letter of Intent:
Negotiate acceptable price, terms and deal structure.
Phase III: The Close (Managing the Transaction) 
Following the execution of the Letter of Intent, Mid-America remains involved through the
finalization of a definitive Purchase and Sale Agreement and closing of the transaction. Experience plays a very important role as the transaction phase presents a number of complexities and challenges that potentially can delay or even prevent the final transaction.
Mid-America provides support and guidance to our client as well as manage the prospective buyer’s due diligence process. This part of the process is sensitive by nature and risky to the transaction as it involves a very thorough review of all aspects of the business. Mid-America expertly manages and controls the process to ensure that issues are promptly and credibly resolved, price and terms are not eroded and the transaction remains both intact and on track.
