Confidential Business Review
After the valuation process, the client is under no obligation to engage our services. However, should the client elect to utilize Crestview Capital LLC as a selling agent, we will then prepare a Confidential Business Review. This document, designed for presentation to prospective buyers, contains the same recast financial statements from the valuation process. It also incorporates a comprehensive description of the business, an explanation of the company’s strategies and plans, and extensive market research regarding the company’s industry and/or market. The Confidential Business Review must be sufficiently detailed to provide all the information a prospective buyer needs to determine whether he or she has a serious interest in the purchase.
From the buyer’s viewpoint, the Confidential Business Review is an invaluable tool. It is prepared, first of all, by a professionally knowledgeable party who understands the needs and interests of buyers. Moreover, it provides in a single document all the traditionally requested data, plus helpful information such as a strategic overview of the company and its industry. The convenience of receiving just one reference source greatly reduces buyer review time. More importantly, based on the depth of data provided, the buyer can generally determine immediately if his or her interest is serious or casual. The Confidential Business Review, distributes only to those buyers who executed a strict Confidentiality Agreement, is professionally prepared, attractively displayed and bound, and impressive in appearance and content when presented by Crestview Capital LLC.
Buyer Identification and Qualification
Based on our knowledge of the business and our contacts with a network of buyers and buyer-intermediaries, Crestview Capital LLC identifies certain potential buyers whose known acquisition criteria matches those of the business in question. Upon an expression of interest and the execution of a Confidentiality Agreement, Crestview Capital provides a copy of the Confidential Business Review to a select number of parties, the financial qualifications of which have already been determined. Client control is maintained throughout this process, as no buyers are contacted without your prior approval. Generally speaking, this leads fairly readily to the identification of one or more buyer-candidates who have serious interest in the business for sale.
Perhaps one of Crestview Capital’s most valuable assets is its network of buyers and buyer-intermediaries, a group of contacts that have been developed over the course of many years of business practice. Our contacts cover the spectrum of individual and corporate buyers, investor groups, leveraged buyout firms, business brokerages, and investment banking firms. These contacts are dispersed throughout the United States; additionally, they include a number of foreign participants, an increasingly active and important category of potential buyers. Without access to a contact base such as ours, the individual seller is unlikely to show the business to a sufficient universe of qualified and interested parties; consequently, the possibility of receiving a premium value is greatly reduced.
Negotiations and Closing
Once a potential buyer has expressed a serious interest, Crestview Capital LLC works directly with the seller to act as a conduit of information to the buyer, providing any necessary additional work to meet the buyer’s due diligence information requirements. We are also available to serve on behalf of the seller as a direct participant in the negotiations and as a source of business advice, especially with respect to the proper structure of the purchase offer. Indeed, the structure of the offer is often as important as the total amount of the offer. Our principals have an extensive experience base in structuring business deals to secure the optimal financial and tax treatment on behalf of the seller; elements typically encountered and/or utilized include cash, non-and preferred stock, employment and/or consulting agreements, non-compete covenants, royalty arrangements, earnout provisions, and annuities. While Crestview Capital does not act as the seller’s legal counsel, we are available to provide general input and suggestions to the seller’s legal counsel.
Confidential Business Reviews are prepared on a fixed fee basis. All subsequent work is performed on a contingent fee bases. That is, all costs for identifying, qualifying, and soliciting buyers, and for advising the seller during negotiations and closing are purely contingent on the ultimate consummation of the transaction in question. Moreover, during the contingency period, Crestview Capital LLC absorbs all out-of-pocket costs for travel and other related expenditures. The contingency fee itself is based on a percentage of the total transaction value, thus providing Crestview Capital with a direct incentive to maximize the value realized by the seller. The percentage is typically based on a sliding scale, with the percentage amount declining as the transaction value increases.
• Strategic planning for corporate growth
• Exit strategy for retiring owners
• Estate or gift tax valuation
• Divorce dispute