Archives

Confidential Auction Program

Sell Your Business Through Confidential Auction Program

CAP (Confidential Auction Program) is a proprietary, industry leading approach to help business owners sell their businesses for the most amount of money and the most attractive terms by soliciting buyers from a pre-screened local, national and international network of interested and motivated prospects.

CAP uses a tested and proven process to encourage buyers to submit offers based on their valuation of the business which may be higher than the seller has calculated the value to be.

Buyers are solicited by e-mail, direct mail, telemarketing, web site postings.

Buyers are provided a “Blind Profile” of the business that encourages them to provide a Non-Disclosure Agreement (NDA). Potential Buyers do not know the name of the business until an NDA is provided.

Once the NDA is provided the Buyer is given a User Name and Password to review detailed information on the business.

The Buyer is encouraged to submit a bid to purchase the business by a date certain set and controlled by Seller and CAP/CBI+Team.

  • Multiple bids are always the goal of CAP
  • Buyers are unaware of the reserve price, therefore making their bids based on the value they perceive
  • Buyers are unaware of how many bidders there are, sometimes resulting in buyers competing against themselves due to the Confidential Auction process
  • Buyers competing means more value/cash for the Seller

The Confidential Auction Program (CAP) is designed to accomplish the following:

  • Market the business through non-traditional channels including the internet for global reach
  • Leverage traditional sales including direct mail, telemarketing, and special interest groups
  • Maximize the sale price through “auction excitement”
  • Conduct a date certain limited auction*

*CAP is a “Limited Auction”…meaning:

  • Owner may establish an undisclosed “reserve” price. If CAP does not achieve that minimum price then the business does not sell
  • In order to verify the reasonableness of the reserve price, CBI+Team may require an independent, certified, 3rd party business valuation. CBI+Team has preferred vendors to provide this service for a fee to the business owner
  • Owner may obtain multiple bids which then can be leveraged by continuing the auction with others who have submitted bids

  1. Discussions between principals of business and CBI+Team
  2. Business due diligence materials provided to CBI+Team to determine potential for deal success
  3. Reserve (non-disclosed) price agreed to
  4. Engagement letter signed and set-up/administrative fee paid
  5. CBI+Team begins assembling information for placement in CDR (Confidential Deal Room).
  6. CBI+Team begins compilation of list of prospective buyers for Business
  7. Sample e-mail list provided to Business for review and input
  8. Final information placed in CDR including non-disclosure agreement and sample offer form
  9. E-mail blast sent out with address of CDR
  10. CBI+Team monitors visits to CDR
  11. Follow up e-mail blast sent if initial list does not produce desired activity
  12. Offers received and presented to Business
  13. Finalists selected by Business
  14. Finalists contacted by CBI+Team and required to provide financial statements or other pertinent financial information proving buyer’s capability
  15. Finalists are invited to personally inspect business assets and location(s)
  16. Final bidding by buyer candidates
  17. Offer accepted by Business
  18. Closing
  19. Buyer receives keys to facilities
  20. Seller deposits proceeds from sale