The Rydell Financial Approach

I would like to give you an overview of how the Rydell Financial process would work with your company.  Throughout the process, we would have a fiduciary obligation to represent your interests only, and not those of any buyer.

THE PROCESS

business-meeting

  • Determine Your Objectives: We will meet with you to accurately determine your objectives.  Here we must decide what you want to achieve including price, terms, timing, and tax consequences.  We look for input from your accountants and legal advisors to understand the implications for you.  From this we will work with you to develop a selling strategy.  The strategy will set a tentative timetable, set pricing objectives, and establish other criteria such as buyer preferences.  There may be operational changes in the business that would be put in place in preparation for a sale.
  • Valuation Report: When you are ready to proceed to the next step, we will thoroughly investigate your company and its marketplace.  We will determine the true market value of assets and see where profitability may be understated on the audited statements.  These hidden values will be used to maximize the value.  I will then produce a valuation report that will serve as a basis for the sale.  Our valuation will be based on three methods: market value of assets, discounted cash flow, and market comparables.
  • Selling Report: We will develop a comprehensive business report describing your business in detail, a process that typically takes 4-5 weeks to complete.  Our objective with the report is to answer as many of the prospective buyer’s questions as possible so we can identify serious buyers and eliminate the “tire kickers”.  The report will be distributed to buyer prospects who have indicated an initial interest and have signed a confidentiality agreement.
  • Select Qualified Buyers: The Rydell team will select a group of qualified buyers.  We will identify an exhaustive list of potential buyers in the appropriate business areas including your industry, related industries, and diverse investment companies.  A great deal of effort will be invested in selecting qualified buyer candidates who have the necessary financial capability.
  • Contact Buyers: Rydell will contact buyers on a highly confidential “blind” basis.  From these contacts will come serious buyers who will sign the confidentiality agreement.  Rydell will develop multiple serious buyers to foster competition and achieve a top price.
  • Buyer Meetings: We will meet with prospective buyers to tour the facilities and meet you.  We will compare buyers and determine together with you who has the strongest interest and the best price, as well as being compatible with your philosophy.  Rydell will be responsible for facilitating communication of information between the parties.
  • Negotiation of the Deal: We will actively participate with you in the negotiation and structuring of the terms of the transaction.  We can get a better price if the negotiations are carefully managed.  Out of these negotiations will come the letter of intent which covers the business deal.
  • Structuring the Legal Framework: We will work with the accountants and attorneys for both sides in the structuring and documentation for the sale, leading up to the final purchase agreement.  There will be a “due diligence” phase which allows the buyer to satisfy himself regarding the quality of the assets, details of the operation and any other financial or legal concerns.
  • Full Coordination: Rydell will coordinate all required services to bring the transaction to a successful closing.
  • Post Closing Assistance: We will be available to help resolve problems which might arise after an acquisition of your company.  We want to build a long-term relationship with you, and to support you through the entire process.

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