Selling a Company in the Built Environment: How the Process Works

Congrats on selling your marketing agency. This is a super exciting time for you! If the process seems overwhelming, don’t worry. With the right team guiding you through the process step-by-step, you can rest assured knowing that the acquisition process is a smooth and rewarding process.

Step 1 – Set-Up an Introductory Call

Set-up an introductory call with our Managing Partner, Patrick Neal. On this call, he will answer any questions you have about the process of selling your company, like how companies in the built environment are valued, the time it takes from start to finish and transition expectations for you after the sale is complete.

Step 2 – The Engagement Agreement

We get paid a retainer plus a commission of the total sales price of the business upon closing. After the introductory call, our team will send you our Engagement Agreement for review, which outlines our role and responsibilities in acting on your behalf to market and sell your company.  

Step 3 – The Valuation

After Stonemill is engaged, we’ll tell you exactly what we think your company is worth today. You’ll send over backlog, 3 years of financial statements and a current balance sheet and P&L, and we’ll turn around the valuation within a week. There are several factors we consider when valuing a company in the built environment, the most important being the net profit of the company. After the valuation is complete, we will schedule a call with you to go over the valuation in detail.

Step 4 – Confidential Information Memorandum

Once the valuation is complete, we will spend time getting to know a lot more about you and your company so we can build a unique marketing strategy, confidential information memorandum and a strong case to our buyer pool as to why your business is a fantastic purchase for them. This phase includes information gathering like the following:

• Project types
• Key team members
• Competitive advantages
• Growth potential

This is the primary document that we use to market your company to buyers. This is our chance to separate your company from the dozens of others that buyers are looking at each month and showcase exactly why your company is a fantastic opportunity for them. FYI – Before any potential buyers view this document, we require them to sign a legal non-disclosure form to ensure utmost confidentiality.

Step 5 – Deal to Market

We’re live! Your company is officially on the market.

• Our Buyer Database. Generally, 80% of our deals get sold to our existing database of buyers we’ve worked with in the past. Since we are meticulous in choosing the companies we sell, buyers know us, they trust us, and we’ve probably sold a company to them in the past. Our database spans every state and includes all sizes of companies that are interested in acquisitions and expansion opportunities and private equity funds looking to expand their portfolios.
• Our Marketing Channels. There are always new buyers coming into the marketplace across the country and globe, and we know how to reach them. Our team uses many marketing channels that are targeted specifically for your type of company. No two marketing strategies are identical. We know every company is unique, and we treat the marketing strategy as such. 

Step 6 – Buyer Inquiries

As a result of our all-out marketing assault, we usually garner significant interest from buyers who want to learn more. It’s important to note that not all buyers are the right buyers. It is paramount that the company who purchases your company will be able to successfully step into your shoes. We spend a notable amount of time getting to know each potential buyer to determine if they are a good fit for your company.