{"id":4703,"date":"2024-01-16T15:21:37","date_gmt":"2024-01-16T14:21:37","guid":{"rendered":"https:\/\/maraz.es\/?p=4703"},"modified":"2026-07-02T18:43:28","modified_gmt":"2026-07-02T16:43:28","slug":"stages-of-the-business-sale-process","status":"publish","type":"post","link":"https:\/\/maraz.es\/en\/stages-of-the-business-sale-process\/","title":{"rendered":"Stages of the Business Sale Process"},"content":{"rendered":"<h2 data-path-to-node=\"5\">Stages of the business sale process<\/h2>\n<div class=\"container\">\n<div id=\"model-response-message-contentr_98312b36bd6fd205\" class=\"markdown markdown-main-panel enable-updated-hr-color\" dir=\"ltr\" aria-live=\"polite\" aria-busy=\"false\">\n<p data-path-to-node=\"1\">The sale of a company is not a one-off event, but a highly complex process that usually represents the most significant financial milestone in an entrepreneur&#8217;s career. <strong>In the M&amp;A (Mergers &amp; Acquisitions) market, improvisation is the enemy of value. A poorly structured process not only reduces the exit price but also exponentially increases the risk of deal breakage.<\/strong><\/p>\n<p data-path-to-node=\"2\"><b data-path-to-node=\"2\" data-index-in-node=\"0\">Choosing the right advisor<\/b> is arguably the most important decision a business owner must make. This professional will not only guide the process but will also become a strategic partner, providing experience, insight, and confidence throughout all phases of the transaction.<\/p>\n<p data-path-to-node=\"3\">Below, we break down the critical phases we follow at <b data-path-to-node=\"3\" data-index-in-node=\"54\">Maraz Corporate Finance<\/b> to ensure the sale process is fluid, confidential, and, above all, a driver of value.<\/p>\n<h2 data-path-to-node=\"5\">Stage 1: Preparation, analysis, and technical valuation<\/h2>\n<p data-path-to-node=\"6\">Before going to market, it is necessary to perform a financial and operational analysis. This phase lays the foundation for the <b data-path-to-node=\"6\" data-index-in-node=\"128\">&#8220;Equity Story&#8221;<\/b> that we will present to investors.<\/p>\n<p data-path-to-node=\"7\">This stage is crucial as it involves <b data-path-to-node=\"7\" data-index-in-node=\"37\">understanding and analyzing the business model<\/b>, the <b data-path-to-node=\"7\" data-index-in-node=\"89\">company\u2019s valuation<\/b>, and the design of the commercial strategy. These elements will serve as the basis for structuring the transaction, identifying key drivers for potential acquirers, and attracting the right buyers. In this phase, it is essential to perform a strategic analysis of the business model and its competitive advantages, identify key attraction factors for potential acquirers, and segment potential buyers into strategic and financial categories.<\/p>\n<ul>\n<li data-path-to-node=\"8,0,0\"><b data-path-to-node=\"8,0,0\" data-index-in-node=\"0\">EBITDA Normalization:<\/b> We adjust financial statements to eliminate extraordinary or personal expenses of the partners, reflecting the business&#8217;s true cash-generating capacity (Adjusted EBITDA).<\/li>\n<li data-path-to-node=\"8,1,0\"><b data-path-to-node=\"8,1,0\" data-index-in-node=\"0\">Technical Valuation:<\/b> We apply rigorous methods (<b data-path-to-node=\"8,1,0\" data-index-in-node=\"48\">Discounted Cash Flow<\/b>, <b data-path-to-node=\"8,1,0\" data-index-in-node=\"70\">Precedent Transactions<\/b>, and <b data-path-to-node=\"8,1,0\" data-index-in-node=\"98\">Comparable Company Analysis<\/b>) to establish a realistic valuation range that serves as an anchor during negotiations.<\/li>\n<li data-path-to-node=\"8,2,0\"><b data-path-to-node=\"8,2,0\" data-index-in-node=\"0\">Identification of &#8220;Red Flags&#8221;:<\/b> We anticipate potential tax, legal, or labor contingencies that could penalize the price during the buyer&#8217;s audit.<\/li>\n<\/ul>\n<p data-path-to-node=\"9\">The objective of this phase is to properly prepare the company for the market and ensure that all documentation is aligned with the exit strategy.<\/p>\n<h2 data-path-to-node=\"11\">Stage 2: Documentation and blind marketing<\/h2>\n<p data-path-to-node=\"12\">In this phase, key commercial documents are prepared, such as the <b data-path-to-node=\"12\" data-index-in-node=\"66\">blind profile<\/b> and the <b data-path-to-node=\"12\" data-index-in-node=\"88\">investment memorandum<\/b>. Confidentiality is the pillar of this stage. The goal is to generate interest without revealing the company&#8217;s identity until the interest of the prospect is guaranteed.<\/p>\n<ul>\n<li data-path-to-node=\"13,0,0\"><b data-path-to-node=\"13,0,0\" data-index-in-node=\"0\">Teaser or Blind Profile:<\/b> A 1-2 page summary highlighting key metrics and the investment thesis without disclosing the company&#8217;s name.<\/li>\n<li data-path-to-node=\"13,1,0\"><b data-path-to-node=\"13,1,0\" data-index-in-node=\"0\">Investment Memorandum:<\/b> The <b data-path-to-node=\"13,1,0\" data-index-in-node=\"27\">CIM (Confidential Information Memorandum)<\/b> or &#8220;infomemo&#8221; is the centerpiece. A detailed dossier including the business model, market analysis, management team, and financial projections.<\/li>\n<li data-path-to-node=\"13,2,0\"><b data-path-to-node=\"13,2,0\" data-index-in-node=\"0\">Counterparty Identification:<\/b> We classify candidates into <b data-path-to-node=\"13,2,0\" data-index-in-node=\"57\">Strategic Buyers<\/b> (competitors or companies seeking synergies) and <b data-path-to-node=\"13,2,0\" data-index-in-node=\"123\">Financial Buyers<\/b> (Private Equity or Search Funds).<\/li>\n<\/ul>\n<h2 data-path-to-node=\"15\">Stage 3: Deal promotion and counterparty selection<\/h2>\n<p data-path-to-node=\"16\">With the documents ready and potential acquirers identified, the promotion phase begins. This is when the <b data-path-to-node=\"16\" data-index-in-node=\"106\">go-to-market<\/b> strategy is launched, presenting the investment opportunity to potential buyers. The order in which each investor is contacted is determined together with the owner, aiming to maximize transaction value and generate competition among interested parties.<\/p>\n<p data-path-to-node=\"17\">During this stage, the first contact is made with identified buyers and exploratory meetings are organized. The <b data-path-to-node=\"17\" data-index-in-node=\"112\">blind profile<\/b> is sent first to protect the confidentiality of the process. Subsequently, <b data-path-to-node=\"17\" data-index-in-node=\"201\">Non-Disclosure Agreements (NDAs)<\/b> are signed, and the <b data-path-to-node=\"17\" data-index-in-node=\"254\">CIM<\/b> is distributed, providing a detailed view of the company, its finances, growth opportunities, and market positioning.<\/p>\n<p data-path-to-node=\"18\">Once potential acquirers have been contacted and NDAs are in place, the competitive process begins:<\/p>\n<ul>\n<li data-path-to-node=\"19,0,0\"><b data-path-to-node=\"19,0,0\" data-index-in-node=\"0\">Non-Binding Offers (NBO):<\/b> Interested parties present an initial indicative proposal regarding price and structure.<\/li>\n<li data-path-to-node=\"19,1,0\"><b data-path-to-node=\"19,1,0\" data-index-in-node=\"0\">Filtering and Shortlisting:<\/b> At Maraz, we evaluate not only the price but also the buyer&#8217;s solvency, their project for the company, and the certainty of closing.<\/li>\n<li data-path-to-node=\"19,2,0\"><b data-path-to-node=\"19,2,0\" data-index-in-node=\"0\">Signing the LOI (Letter of Intent):<\/b> This is the &#8220;pre-contract&#8221; where the final price, exclusivity, and the operation&#8217;s timeline are set. The structure of the <b data-path-to-node=\"19,2,0\" data-index-in-node=\"158\">LOI<\/b> sets the ground rules for the deal and allows for a more secure move toward <b data-path-to-node=\"19,2,0\" data-index-in-node=\"238\">Due Diligence<\/b>.<\/li>\n<\/ul>\n<p data-path-to-node=\"20\">In this stage, negotiations can take two main forms: <b data-path-to-node=\"20\" data-index-in-node=\"53\">exclusive negotiation<\/b> with a single acquirer or an <b data-path-to-node=\"20\" data-index-in-node=\"104\">auction process<\/b>, where several interested parties compete simultaneously. Regardless of the approach, the goal is to obtain the best offer and define key transaction terms.<\/p>\n<h2 data-path-to-node=\"22\">Stage 4: Due Diligence<\/h2>\n<p data-path-to-node=\"23\">With the LOI signed, the buyer begins the audit of the company (<a href=\"https:\/\/maraz.es\/en\/financial-due-diligence\/\"><b data-path-to-node=\"23\" data-index-in-node=\"64\">Due Diligence<\/b><\/a>). This is often the highest-tension phase of the process.<\/p>\n<p data-path-to-node=\"24\">Through a <b data-path-to-node=\"24\" data-index-in-node=\"10\">Virtual Data Room (VDR)<\/b>, we provide all necessary documentation (financial, legal, tax, technical). The advisor&#8217;s role is fundamental in filtering information, answering inquiries, and preventing the buyer from attempting to renegotiate the price downward based on minor findings during the review.<\/p>\n<p data-path-to-node=\"25\">The process covers a deep dive into financial, legal, tax, labor, and environmental areas, among others. It is essential to identify and resolve any detected contingencies to avoid negative adjustments to the final valuation.<\/p>\n<h2 data-path-to-node=\"27\">Stage 5: Negotiation of the Purchase Agreement (SPA) and Closing<\/h2>\n<p data-path-to-node=\"28\">Once this stage is reached, the definitive <b data-path-to-node=\"28\" data-index-in-node=\"43\">SPA (Share Purchase Agreement)<\/b> is drafted and negotiated, along with <b data-path-to-node=\"28\" data-index-in-node=\"112\">SHA (Shareholders Agreements)<\/b> if necessary. Finally, potential <b data-path-to-node=\"28\" data-index-in-node=\"175\">valuation adjustments<\/b> derived from the Due Diligence process and their impact on the final price are discussed and agreed upon. Here, numbers are transformed into protective legal clauses.<\/p>\n<ul>\n<li data-path-to-node=\"29,0,0\"><b data-path-to-node=\"29,0,0\" data-index-in-node=\"0\">Reps &amp; Warranties:<\/b> We define the representations and warranties the seller provides regarding the state of the company.<\/li>\n<li data-path-to-node=\"29,1,0\"><b data-path-to-node=\"29,1,0\" data-index-in-node=\"0\">Price Adjustment Mechanisms:<\/b> We negotiate <b data-path-to-node=\"29,1,0\" data-index-in-node=\"42\">Earn-outs<\/b> (variable payments based on future results) or adjustments based on <b data-path-to-node=\"29,1,0\" data-index-in-node=\"120\">Net Debt\/Cash<\/b> at the closing date.<\/li>\n<li data-path-to-node=\"29,2,0\"><b data-path-to-node=\"29,2,0\" data-index-in-node=\"0\">The Closing:<\/b> Execution before a notary and the transfer of funds.<\/li>\n<\/ul>\n<p data-path-to-node=\"30\">It is important to consider that M&amp;A processes can be prolonged depending on the complexity of the operation and the number of parties involved. Given the high number of variables and its significance, this is often one of the most important moments in an entrepreneur&#8217;s professional life.<\/p>\n<h2 data-path-to-node=\"32\">Frequently Asked Questions (FAQs)<\/h2>\n<h3 data-path-to-node=\"33\"><b data-path-to-node=\"33\" data-index-in-node=\"0\">How long does a sale process usually last?<\/b><\/h3>\n<p data-path-to-node=\"33\">On average, a well-managed M&amp;A process ranges between <b data-path-to-node=\"33\" data-index-in-node=\"97\">6 and 12 months<\/b>. The preparation phase usually takes 1 month, search and marketing 2-3 months, and the due diligence and closing phase another 3-4 months.<\/p>\n<h3 data-path-to-node=\"34\"><b data-path-to-node=\"34\" data-index-in-node=\"0\">Should I inform my employees about the sale from the beginning?<\/b><\/h3>\n<p data-path-to-node=\"34\">Our recommendation is to maintain <b data-path-to-node=\"34\" data-index-in-node=\"98\">maximum confidentiality<\/b> until the operation is in a very advanced stage or closed. Uncertainty can lead to the loss of key talent or operational distractions. Only the strictly necessary management team should be aware of the process to provide data for Due Diligence.<\/p>\n<h3 data-path-to-node=\"35\"><b data-path-to-node=\"35\" data-index-in-node=\"0\">What is the difference between value and price in a sale?<\/b><\/h3>\n<p data-path-to-node=\"35\"><b data-path-to-node=\"35\" data-index-in-node=\"58\">Value<\/b> is the result of a technical analysis based on projections and assets. <b data-path-to-node=\"35\" data-index-in-node=\"135\">Price<\/b> is the final figure a buyer is willing to pay based on expected synergies and market timing. A good advisor works to ensure the price always exceeds the initial technical value.<\/p>\n<h3 data-path-to-node=\"36\"><b data-path-to-node=\"36\" data-index-in-node=\"0\">What happens if Due Diligence detects a problem unknown to the seller?<\/b><\/h3>\n<p data-path-to-node=\"36\">It is common for adjustments or contingencies to appear. Ideally, a <b data-path-to-node=\"36\" data-index-in-node=\"139\">Vendor Due Diligence<\/b> (a prior audit commissioned by the seller) should be conducted to rectify issues beforehand. If a problem arises during the process, the strategy usually involves a price reduction, an <b data-path-to-node=\"36\" data-index-in-node=\"345\">escrow<\/b> (holdback), or a specific indemnity clause in the SPA.<\/p>\n<h2 data-path-to-node=\"38\">The value of Maraz Corporate Finance in the business sale process<\/h2>\n<p data-path-to-node=\"39\">Selling a company is an exhausting process that can distract from the daily management of the business. At <b data-path-to-node=\"39\" data-index-in-node=\"107\">Maraz<\/b>, we act as both the shield and the engine of the operation: we manage the technical complexity and negotiating pressure so you can continue leading your company.<\/p>\n<p data-path-to-node=\"40\">Our experience allows us to anticipate buyer movements and maximize not only the final check but also the legal security of your assets. At Maraz Corporate Finance, we turn your trajectory into the best possible outcome.<\/p>\n<p data-path-to-node=\"41\">An entrepreneur wishing to sell their company must be prepared for a demanding process that requires <b data-path-to-node=\"41\" data-index-in-node=\"101\">strategy, patience, and a skilled advisory team<\/b>. With a structured approach and the right guidance, it is possible to achieve a successful sale that maximizes value and ensures a smooth transition for all parties involved.<\/p>\n<p data-path-to-node=\"42\"><b data-path-to-node=\"42\" data-index-in-node=\"0\">Are you considering a generational transition or <a href=\"https:\/\/maraz.es\/en\/mergers-acquisitions\/\">the sale of your compan<\/a>y?<\/b> At Maraz Corporate Finance, we can help you.<\/p>\n<p data-path-to-node=\"43\"><a href=\"https:\/\/www.linkedin.com\/in\/javierderojas\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #333399;\"><strong>Javier de Rojas Roca de Togores <\/strong><\/span><\/a><\/p>\n<p data-path-to-node=\"43\"><span style=\"color: #333399;\"><strong><i data-path-to-node=\"43\" data-index-in-node=\"32\">Partner \u2013 Maraz Corporate Finance<\/i><\/strong><\/span><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Stages of the business sale process The sale of a company is not a one-off event, but a highly complex process that usually represents the most significant financial milestone in an entrepreneur&#8217;s career. In the M&amp;A (Mergers &amp; Acquisitions) market, improvisation is the enemy of value. A poorly structured process not only reduces the exit [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":2051,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[163],"tags":[],"class_list":["post-4703","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mergers-acquisitions"],"acf":[],"_links":{"self":[{"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/posts\/4703","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/comments?post=4703"}],"version-history":[{"count":0,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/posts\/4703\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/media\/2051"}],"wp:attachment":[{"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/media?parent=4703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/categories?post=4703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/tags?post=4703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}