THE MAINSOURCE METHOD
Selling your company is one of the most important financial transactions of your life. Without professional help, you will be negotiating an integral part of your personal net worth with experienced buyers who purchase several businesses every year. You face demanding and complex procedures with innumerable pitfalls and dangers.
An you face them alone.
The Mainsource Method is a proven program designed to sell your business for maximum value in the shortest practical time. It is a focused, results oriented approach with several check points along the way to facilitate any necessary sudden adjustments and to ensure the successful completion of the sale of your company.
A Process Approach
The Mainsource Method consists of 15 separate activities, each one carefully planned and properly executed to ensure a smooth transition to the next activity.
Proper execution of each activity is crucial to the overall success of the sale of your company; it is for this reason that you will be able to control the progress of the entire process. Furthermore, a new activity will not begin until you have had a chance to review and approve the previous one.
STEP 1 - ASSESSMENT MEETING
The process begins with a meeting between you and Mainsource at your place of confidentiality where the potential sale of your business is discussed frankly and confidentially.
STEP 2 - VALUATION
If we agree to proceed, Mainsource will produce the Confidential Evaluation Report. You cannot sell your company for a premium price unless you first know its value. This document is for the seller's eyes only. It analyzes the business and focuses on the optimum price at which it will sell in the current merger / acquisition marketplace.
The evaluation stage consists of three essential components:
A - Recasting financial records
B - Defining future assumptions
C - Pro-Forma preparation
STEP 3 - SELL OR HOLD
At this point, you, the seller, make the decision to go forward. You are under no obligation at this point to sell. However, Mainsource is contractually obligated to market your company if you so choose.
STEP 4 - DEFINITION OF PERSONAL NEEDS
Your personal need must be addresses early in the transaction. They need to be thoroughly thought out and documented to insure their satisfaction as the transaction proceeds. This stage will provide a guideline for preliminary negotiations and the deal structure of the transaction.
STEP 5 - CONFIDENTIAL MARKETING DOCUMENT
The Evaluation Report becomes the basis for the preparation of the Confidential Marketing Document - the official selling document for your company.
This comprehensive document includes factors that will add value and marketability to your company, such as, potential new business areas, industry outlook, market conditions, hidden assets, pro-forma and recast financial statements, organizational structure, products, technology and several others.
These issues are formatted and written to appeal to the buyer's perspective as they address Return On Investment, strategy fulfillment and synergy with their existing operations.
STEP 6 - CONFIDENTIAL BUSINESS SUMMARY
Mainsource and / or its affiliates contact a large number of prospective buyers. The Confidential Business Summary is a short profile of your company, used as a lead generation marketing tool to create a preliminary indication of interest from prospective buyers.
STEP 7 - PROSPECTING STRATEGY MEETING
This is a critical, extremely important meeting where you and Mainsource will create the basis for marketing your company. All the resources and experience of Mainsource and the M&A Network are focused on the issues of who will be the best buyers for your company, and what factors might impede the sale.
STEP 8 - PRIMARY STEP MARKETING
Based on decisions made at the Prospecting Strategy Meeting, Mainsource will develop a "long" list of active / prospect buyers, using all resources including proprietary databases, publications, and networking through the Mainsource M&A Affiliates.
STEP 9 - CONFIDENTIAL MARKETING TO ALL RESPONDENTS
Prompt response and proper follow up to all interested buyers with a copy of the Confidential Marketing Document is essential. At this point, prospective buyers must execute a non-disclosure agreement before the Confidential Marketing Document is distributed.
STEP 10 - NEGOTIATING AND DEAL STRUCTURE
The Mainsource Method brings multiple, qualified buyers to the table. Only by negotiating with several buyers under carefully managed guidelines can you be assured of getting maximum value for your company.
STEP 11 - THE LETTER OF INTENT
Mainsource will help assure you that this extremely important step is done thoroughly and thoughtfully. It is the "Agreement to Agree" with the buyer of your choice. It spells out the basic elements of the transaction; any further marketing stops at this point while the buyer performs due diligence on your company.
STEP 12 - FINANCING
Mainsource maintains close ties with both debt and equity sources of financing. Most buyers do not require financing assistance, but when it is necessary, we will provide introductions and advice to facilitate the closing.
STEP 13 - DUE DILIGENCE
This step involves a detailed investigation by the buyer into your business. Mainsource will assist you and will be there through this entire critical phase of the transaction.
STEP 14 - THE PURCHASE AGREEMENT
During this phase, all the documentation for the transaction comes together. We use our experience to review the agreement and assist in resolving last minute differences.
STEP 15 - THE CLOSING
This is your objective and the end result that the Mainsource Method is designed to bring about at the optimum gain to you.