FAQs

Below you will find answers to common questions we are asked about SiVal and the M&A process. If you have any additional questions we can answer, don’t hesitate to contact us.

Your expertise is in running your business and it’s more than a fulltime job.  An Advisor’s expertise is in handling the intricacies and complexities involved in selling a business.  These include preparation of the documents to frame and showcase the business and how it would be a fit for different types of acquirers, developing a go-to-market sales strategy, soliciting buyers from a range of industry sectors and geographies (including international), negotiating the delicate details of the transaction and enabling you and your team to continue to run the business during this intensive and detailed process.

As an example, let’s examine the process of selling a home.  Most people have experienced how difficult selling their house is. They engage realtors to organize the preparation, handle the selling process, and help negotiate the final deal. Home sellers have lives to lead, jobs to do, and families to raise. Most people are not current on the latest regulations and market details, so they turn to professionals who sell houses every day.  Similarly, most business owners and their investors turn to M&A professionals to sell the company they own. Rarely, if ever, do they try to sell it themselves. Too much is at stake in both situations to take the risk of things going awry by going it alone.

Size is less important than growth, profitability, IP, and other factors that combine to drive company’s value. We are typically seeking to represent companies with potential sale values in excess of $10 million. Every situation is different, and companies with similar revenue and profitability levels, but from different industries, can have dramatically different valuations. So best to talk to a partner at SiVal about your situation. Click here to connect with us.  

One of the major benefits of hiring SiVal is that it enables you to focus on what you know and do best – building a company, creating happy customers, and exciting investors. SiVal manages the details of the selling process. The last thing you want to happen is for the business to take a downturn because you took your eye off the ball. With an Advisor like SiVal managing the sale process, you can continue to keep your business growing and profitable through to a successful deal closing!

The answer depends on you, your company, and what work you have done before engaging SiVal.  The initial preparation work generally takes 4 to 8 weeks as our practice is to be fully prepared before we go to market in order to expedite the sale process once we engage with interested buyers.  The sale process generally takes between 8-12 months.

Due diligence is an intensive process where buyers want to delve into every detail of your business. This is why working with the right Advisor is critical – one who will engage with the buyers, understand their motivations and create ‘guard rails’ at each stage of the due diligence process, thus eliminating undue ‘digging’ until we flesh out their genuine interest and price ranges.  The key element is to create keen interest among multiple buyers and establish an auction process to yield the highest value for your business. Preparation for due diligence takes serious work: organizing your books, records and financial statements as well as preparing credible financial projections. We guide you through each step in the process, including working with your existing accountants, lawyers and wealth manager (we can also assist you with contacts if needed). Some ideas are found here.

SiVal’s compensation comes primarily from a success fee paid when the transaction closes. Additionally, a monthly retainer is required to defer some SiVal costs in the preparation and execution of the M&A process. The retainer (usually offset against the success fee) also shows your commitment to getting a deal done.

No, SiVal focuses on sell-side transactions where the company would like to be acquired and buy-side transactions where the company would like to acquire other companies. We will also work with companies in advance of a transaction to help the company prepare for an exit.