Stories of Success “It’s an enormous task to buy a business and you made it easier for us. We love our new business and it has exceeded our expectations!”

- Bruce Sepielli

The Mill Creek System
    • Opinion of the Value and Pricing:
  • Establishes a clear starting point in setting an asking price
  • Helps to answer the question, “is it the right time to sell?”
  • Can be used to firm up financing before the sale, resulting in more cash to seller. Provides a mechanism to review after-sale cash and tax positions


    • Positioning the Business for Sale:
  • Compile critical data including financials, tax returns, equipment lists, contracts and leases
  • Author Confidential Selling Memorandum

A. Executive Summary


Investment Highlights

Financial Highlights

Training and Support

Capital Requirements

B. Business Description

Investment Highlights

Owner Qualifications

Marketing and Sales

Operations

Personnel

Capital Equipment

Location and Real Estate

C. Competition and Market Assessment

Competition

Market Dynamics

D. Growth Opportunities

E. Financials Schedules




    • Identify and Qualify Buyers:
  • Potential buyers review and approve a Confidentiality Agreement before sensitive information disclosed
  • Buyers complete profile with buyer’s background, employment history and financial situation.
  • Mill Creek provides only enough information for the buyer to make an offer. Full due diligence will only be allowed after the buyer has made an offer and the seller has agreed to the terms of the offer.



    • Strategic, Financial and Individual Buyers:
  • Research market, identify strategic buyers and provide basic “teaser” data.
  • Research Private Equity Groups which meet strategic profile.
  • Provide Confidential Selling Memorandum and respond to information.
  • Database marketing of business to individual buyers – websites, MCP databases



    • Negotiate Offers:
  • Manage Limited Auction
  • Obtain Letters of Interest from buyers


    • Author Asset Purchase Agreement and Other Documents:

    • Locate and Negotiate Financing for the Buyer
  • Strategize financing options based on Opinion of Value.
  • Identify banks most likely to finance transaction.
  • Change of ownership financing up to $2 million – SBA 7a.
  • Conventional financing.
  • Real Estate financing including SBA 504.
  • Submit deals to banks for pre-approval
  • Assist buyer in negotiations including documentation.
  • Follow through with loan officers and underwriters.


    • Manage Due Diligence:
  • Financial data
        Income Statements and Balance Sheets
        Cash Flow
  • Review of customer lists and vendors
  • Review of operating procedures
  • Inventories
  • Other Current Assets
  • Fixtures, furniture and equipment
  • Leases and other contingencies


    • Close the Transaction:

      The closing documents define the terms of the transaction:
  • Asset/Stock Purchase Agreement
  • Bill of Sale
  • Notes
  • Security Agreements
  • Guarantees
  • Leases

    •   Important elements that often require negotiation are
  • Allocation of Purchase Price
  • Representations and Warranties
  • Indemnifications
  • Notes
  • Personal Guarantees
  • Lease Assignments
  • Assumption of Specific Liabilities

Schedule your free consultation now. Mill Creek Partners makes selling your business simple and gets you what you have earned.

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