THE PROCESS

The key to any successful business sale usually begins well in advance of the actual meeting between buyers and sellers. Cobalt Business Brokers will guide its clients through a multiple step process centered on a core set of objectives. These areas of focus ensure that all companies (and individuals) from various industries receive a similar level of service as necessitated with larger business transactions.

1. Business Ownership Interview

Cobalt conducts an initial meeting with the business owner(s) for an assessment of owner requirements, timing, confidentiality considerations, operational status, general market / industry structure and other relevant information designed to determine owner objectives and assess current marketability of the business. In some cases, it will be advisable for the owner to put into place corrective measures to increase the value of the business prior to placing the business for sale.

2. Valuation

A Cobalt Broker will continue to consult with ownership for an in-depth compilation of company financial information. The financial statements and other relevant data will assist Cobalt in determining the most viable format for a valuation. Traditionally, valuations are best suited to be completed by a Certified Business Appraiser, an independent third-party that prepares a formal valuation that may also be suitable as a document for bank financing. Other methods include industry specific comparables, financial multiples and other cash-flow valuation methods.  Businesses are quite varied, but Cobalt will assist the owner in selecting the best resource.

3. Pre-Market Preparation

An integral component for increasing the preparedness of a company and enhancing the likelihood of a sale is organizing due diligence documentation. Cobalt professionals will assist the owner(s) in preparing and organizing due diligence packages that will help expedite the closing process.  Without proper preparation, stumbling blocks to a potential close can be uncovered early; but with our help, these issues can be rectified beforehand and thereby increase the probability for a speedy and successful close. This level of experience is what sets Cobalt ahead of its competition and increases closing rates – making for many satisfied buyers and sellers.

4. Marketing Plan and Offering Document Preparation

The purchase of a business represents a significant transaction for most buyers. In order for the business transaction to move forward with increased probability of success, the business opportunity, analysis and financials must be professionally represented in an offering document.

Success for small and middle-market company transactions can be directly attributed to preparedness. Cobalt’s duty is to execute the same level of professionalism provided to large enterprises. We will prepare detailed offering packages that will be well received by entrepreneurs and required by both financial and strategic investors (and their advisors).

5. Active Marketing

Cobalt invests the bulk of its financial resources in marketing. Along with a national and international network of websites, Cobalt markets both geographically and within the specific industry for a client’s business (strategic buyers).  The power of the internet has become a valuable tool but it should not be the solitary source of marketing. Regional demographics determine whether qualified buyers can be reached outside of the local area. Because Charlotte, North Carolina generates a considerable influx of relocation from New York, New Jersey, Florida, Virginia and California, Cobalt markets to these areas accordingly.

6. Transaction Support and Structuring

Transaction and negotiation experience is a key ingredient to Cobalt’s professional services. Most owners may sell only one business in their lifetime. To bridge that experience gap, Cobalt’s team of professionals will assist all clients in creating alternative deal structures and financial packages while managing the stages of the transaction process to the final closing.