Catapult Connect

So, you’ve found a potential buyer for your business, but now you’re not sure how to seal the deal or if the deal is even right for you? That’s where Catapult Connect comes in. We’re here to help you turn that initial knock on the door into a solid deal.

Most people only sell their business once, so you only have one chance to get it right.   Identifying the buyer is only a small part of the process.  We’ve got the know-how to guide you through the whole process from knock to close.

Catapult Connect

During the negotiation process, it’s important to maintain transparent communication, understand what both sides need and want, and remain flexible to find the deal value and terms that works best for you.

Manage Communication

Gather all necessary documents related to the business, such as financial statements, contracts, leases, and legal documents. Determine your goals and priorities for the sale.

Everything you say can and will be used against you during negotiations. We call that the “Miranda Rights of M&A”. The other side is trained on how buy companies and get the most value for their investors. They are probably going to come off as friendly, which they may be, but it is also a negotiation strategy. The friendlier they are, the more you talk. The more you talk the less your business is worth.

You will also most likely receive a long and complex request list so they can make an offer.   They don’t need all that information, at least not at this point of the negotiation. We know what they need and create simple financial and business package that will allow them to make offer. 

We will manage the communications and data requests and provide a buffer for you so you can properly evaluate your options.

Evaluate Offer

We will prepare a market analysis for your business, which will be the baseline for negotiations when an offer is received.   This allows you to negotiate from a position of strength and know when it’s time to a walk away.

In some situations, we may even conduct a qualifying or validating auction.   We can do this when we know there are multiple active buyers for companies like yours.  This process helps reduce seller’s remorse.   

Negotiate Deal

Once an initial offer is received, there can and probably will be multiple counteroffers before a final letter of intent (LOI) is signed.  

Additionally, the buyers may want to meet with the owners to learn more about the company to refine their offer. 

We will manage this process, prepare you for each conversation and strategize with you on each counteroffer until it’s right for you.

We will also work with your other professionals to evaluate the implications of each offer for its impact on your taxes, estate plans, financial plans and legacy. If you don’t have the right professionals to help, we do and we can make introductions.

Due Diligence

Once and LOI is signed, the real fun begins… due diligence. Up to this point, we have provided the buyers with a lot of information at a highly summarized level. Now the buyers get to validate this information before the deal is closed. The areas of focus are financial review (typically in the form of a Quality of Earnings Report), taxes, legal, employees and benefits, insurance, IT, IP and environmental.

We will work with you and your team of professionals to gather the requested information, verify that it is consistent with information provided earlier in the process, and organize the data in an orderly fashion in a virtual data room.

Due Diligence also requires more meetings with owners and their professional teams.  We will coordinate those meetings and prep you for each meeting. 

Closing

Finalize the sale by signing the purchase agreement and transferring ownership to the buyers.  

If there are some post-closing contingencies like working capital adjustments and/or earnouts, we will work with you and the buyer to ensure those adjustments are handled properly according to the purchase agreement.

I have nothing but high praise for Greg DeSimone. He has been working with us over the past ten years; initially as a consultant to help us prepare our company for its eventual sale – and again when it was time to navigate the sale process.

Selling a company is a very emotional and stressful experience, but that emotion and stress is alleviated when you have a trusted advisor guiding you along the way. Greg’s insight and experience allowed us to be fully prepared through the entire acquisition process. He became a trusted member of our team.

We could not imagine selling without Greg in our corner. He is truly a business partner in every sense of the word, displaying transparency, reliability, incredible business insight and a wealth of experience. He is always available for questions and guidance and doesn’t disappear after the close.

It is impossible to measure the value Greg brought to our company throughout the years, and especially his partnership throughout our selling process.

-Lisa and Tim Cutler