First, we must learn about your business. What's gone well, and what's not gone so well. We need to collect copies of your company financial reports and tax returns, along with other documents. We need to gain an understanding of your marketing, your operational processes, the nature of your management team. We need to know what may threaten future performance. We need to know what opportunities for enhanced performance might be available for a future buyer.
A Note About Confidentiality
We assure you that your reports and information will be handled with the utmost security to maintain confidentialty. Doing so is essential for maintaining your trust, and our success.
In fact, the Tranzequity web site employs a Virtual Deal Room. This highly encrypted, password-protected technology is used by few business brokers, but most, if not all, Wall Street investment banks. This online data room optimizes the due diligence process, while increasing the security with which information is shared.
Your company information is more secure since we use this technology.
Review and Adjust Financial Statements
The first step in the process is to adjust the company's historical financial statements from a tax-driven basis to an economic basis. Smaller, privately-held companies' financial statements are often constructed in such a way to minimize earnings, in contrast to publicly-held companies in which earnings are maximized. Adjusting, also called "recasting" or "normalizing," historical financial statements shows the true earning power of your company to a buyer.
Pro Forma Projections
While the historic view of your company's performance is critical, buyers don't buy for what has been, they buy for what can be.
The true economic value of your company is determined by the anticipated future benefits of owning it. For many larger businesses, it typically is important to develop three to five year forecasts of financial performance, however smaller companies may not be prepared to do this. We will recommend the appropriate course of action, depending upon the individual circumstance.
Establish Valuation
In order to analyze the marketability of the company, we must first establish its value. Much learning about the company and potential buyers is gained during this process, and the appropriate marketing strategy begins to take shape.
After we reach agreement on an expected price range for the company, our next step will be to define the marketing strategy for the company in more detail, then develop confidential marketing materials.
Confidential Marketing Process
Our processes are designed to
protect confidentiality at every step, starting with the “packaging” of the business.The packaging of the business is fundamental
to maximizing potential buyers’ perception of a company’s value. The
packaging documents “tell the business’s story” and its future potential.
While
the marketing tactics vary from situation to situation, we employ a number of
tactics to confidentially expose a business for sale, with a goal of eliciting as much qualified
interest as possible and generating multiple offers.
For Sellers 
