Services for the Sellers

For a business owner, selling a business is much more than a transaction. It often reflects the culmination of years of effort and represents the owner’s largest financial asset. Rather than rush to list a business, we first listen. BLUESTONE believes that to best serve our clients, it is necessary to identify and fully understand all the client objectives as it relates to the transaction. Objectives can be concrete (I.e. maximizing transaction value) or intangible (insuring employee positions). A thorough understanding of a client’s objectives helps to identify potential obstacles to the completion of the transaction early on in the process and highlight creative strategies to facilitate a successful transaction.

Benefits of working with BLUESTONE :

• Business Valuation using Comparative Database
• Valuation Maximization Consulting
• Experienced, Third Party, Terms and Structure Negotiation
• Qualified Buyer Database
• Screening and Qualification of Potential Buyers
• Strategic Analysis
• Technology Assessment

Our Approach:

First assessment - Discuss the business in general terms including needs and goals. Meet at the business - Gain an understanding of the operation, review financial statements, tax returns and other information.

Discuss Seller’s goals - More than just financial. Do you desire to stay on for a period of time? Do you desire more from the sale of the business than it is worth? We suggest possible courses of action. For example, we obtained an additional $3 million for a client by suggesting delaying the business sale for one year while we worked closely with him and made recommendations for his company during that year.

Advise Seller on pricing - Determine a realistic price for the business that incorporates intangibles, thus reducing the danger that every Seller fears – under pricing their business. Bluestone Acquisitions helps the Seller understand that the selling price is dictated by the marketplace -- not by an accountant or friend who may have an unrealistic idea of what the business is worth.

Bluestone Acquisitions Listing agreement - Determine fees, as well as, the work to be performed.

Prepare Seller Memorandum - Provide Seller with a checklist of information that is required to create the Seller Memorandum. Meet with Seller to interview and learn further details about the operation and it’s potential, as well as, any challenges. Present the business as effectively as possible. Seller reads this information and approves the package upon completion, as this is the information that is given to qualified Buyers.

Determine the correct Buyer for Seller’s business - Locate and “blindly” solicit prospective Buyers using our existing proprietary Buyer database, as well as, advertise the business through various channels without disclosing details such as business name, address, etc. We target the correct Buyer because we profiled the business in detail with our Seller Memorandum.

Non-disclosure/Confidentiality/Financial disclosure agreement (NDA) - We ask every prospective Buyer to sign an NDA for confidentiality and to disclose Buyer’s financial information and industry experience for qualification purposes. Confidentiality is very important especially with employees. We do not disclose any detailed information regarding the business without a signed NDA and the Seller’s permission.

Buyer’s name is disclosed to the Seller - Once a Buyer is determined to be qualified, we request that the interested Buyer be “approved” as a Source. This is done so that we do not disclose to an employee or competitor or vendor or any individual to whom the Seller may not want to disclose information about the business.

Address Buyers questions and concerns - We follow up with each prospective Buyer. Because we take the time to understand the Seller’s business prior to putting it on the market and accept clients in industries. Bluestone isn capable of discussing the business with prospective Buyers allowing the Seller to focus on the business to maintain sales and profits while the business is for sale.

Tour the business - Arrange and accompany the Buyer on a tour of the business and meeting with the Seller. Tours can be arranged during off hours if needed.

Letter of Intent(s) (LOI) - We assist in structuring an LOI and present the offer(s) to Seller. Our LOI is highly detailed and contains all the issues that address the Seller’s goals based on the initial interviews and ongoing relationship we have developed. Buyers, as well as, CPA’s and attorneys with whom we have worked, have stated that Bluestone Acquisitions LOI is the most comprehensive that they have ever seen. The benefits of Bluestone Acquisitions LOI: (1) Since the time to negotiate the best offer is when the business is still on the market, we negotiate and detail ALL the terms and conditions prior to taking the business off the market. Industry standard is to leave the "details" to the attorneys after the business has been off the market for a month or more. This industry standard may contribute to why the average business broker only closes 23% of their deals and Bluestone Acquisitions closes 100%.

(2) We generally have multiple Buyers interested in submitting an LOI. By addressing all of the details at this stage, Bluestone Acquisitions LOI assists the Seller in selecting the most appropriate Buyer and the best offer. It is important to choose the Buyer who will actually follow through with the purchase before turning away all other Buyers.

Negotiation - Bluestone Acquisitions determines the strengths and weaknesses enabling us to assist in posturing you favorably. Our years of experience make us vital during the stages of negotiation; bringing to "the table" objectivity as well as negotiation skills developed through years of experience buying and selling businesses. This obtains the best offer for the Seller and the most appropriate Buyer for the business.

Attorneys draft agreements - This process generally is less costly and easier because of Bluestone Acquisitions LOI which already detailed the terms and conditions

Closing occurs - Seller realizes their goal(s).