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Redtail Capital - Unlocking Business Value

 

Your Exit GoalsBusiness Exit OptionsBuilding Business ValueBusiness Exit ProcessWhy Choose Redtail Capital?

Exit Processes

Valuation

Legal

Financial

Risk/Insurance

Management

Transaction

Marketing

LOI

Due Diligence

Closing

Wealth Preservation

The Letter of Intent 

A letter of intent from a purchaser is like getting an offer from someone who wants to buy your home. You know how much they are willing to pay, how they want to structure the transaction, and what stands in the way of closing the deal.

In most cases, we will see more than one LOI during the marketing process. Each one will be analyzed and ranked in order of preference. There are several factors to consider besides price. You will have to determine which one best fits your desired outcome.

This is where negotiation starts in earnest. Every detail of the LOI must be reviewed and digested. You have to choose your battles carefully. We will work with you to determine absolutes - the deal breakers - as well as the points that you don't like but can be flexible on.

You will want the final LOI to be as detailed as possible. Let's make sure that all of the deal details are ironed out in advance. This is the time to make sure that this is the best possible outcome of your exit plan. You will need to go over tax implications with your CPA, wealth preservation with your wealth planner, and you will need to discuss it with key management and your family.

Once you have negotiated an acceptable LOI, both parties sign and the real work begins. At this stage we always remind our clients that now is not the time to put your business operation aside as you work to close the deal. If you start running your business for the deal, you will usually end up with no deal - and maybe no business!