Stonemill partners

Your Transition Plan Might Need to Start Now

Your transation Plan Might Need to Start Now

Everyone in the built environment wants to know the trick to successfully selling a business or executing well on any exit strategy. Is it assembling a team of the best advisors, building a huge backlog, or having a strong second tier of leaders?

Those things are great, but the secret to successfully selling a business in the built environment is to PLAN.

When talking to firm owners, partners, and principals in the built environment, we often hear that they are planning a transition or a sale of their business, “…in 4 or 5 years.”

Our response to that is, that if that is the case, you should start the transition / selling process now.

Consider the following timing:

  • The first step of the process once engaged with an M&A firm that is 100% focused on the built environment, like Stonemill, is the valuation of your business. After the valuation a confidential information memorandum (CIM) / marketing package is prepared. At that point Stonemill is ready to go to market representing your business for sale. Prospective buyers are then contacted.
  • Once an interested prospective buyer, that is a cultural fit for your business is identified, the initial conversation happens between you and the prospective buyer. If the initial conversation goes well, face-to-face visits take place, additional information is requested from the prospective buyer, and next steps are identified.
  • At this point, the prospective buyer will most likely submit a Letter of Intent (LOI) to purchase your business. Once a letter of intent is accepted by you, a period of due diligence opens and lasts 45-60 days, closing documents are prepared and finalized and closing then takes place.
  • In addition, the buyer will most likely require a 2–3-year transition period from you to stay on with the business post-closing.

The process from start to finish including your transition will take approximately 3 -4 years. If your time frame objective of completing a transition is 3 to 4 years away then the time to start the transition process, is NOW.

To learn more about the process of selling your firm in the built environment contact us today.