Share
Written By :
A successful sale involves a rigorous process. Abris CBI and Mégatex are two businesses that we have successfully supported—one step at a time.
Guided by our team of experienced professional advisors, Roger Guay, owner of Abris CBI and Mégatex, handed over the reins to a preferred buyer, confidently and serenely.
For over a decade, Roger has built up both his businesses, Abris CBI and Mégatex, based in Lévis and Québec City respectively. Abris CBI specializes in manufacturing temporary winter shelters as well as summer shelters and awnings. Mégatex designs, manufactures and distributes industrial tarps and nets for the construction, transportation and environment industries, among others.
When he turned sixty, the entrepreneur felt the need to slow down and considered selling one of his businesses. He initially called on our services to assist him with the sale of Abris CBI.
“The business was well positioned in its industry and, at the time, had around 15 employees. It was important for me to hand it over to a buyer who would continue to help it grow,” said Roger Guay.
Such a process can monopolize the attention of a business owner, who must also keep the business running smoothly. Thanks to our proven process, we know exactly what path to take to close an SME sale as quickly as possible. This means that the business owner can focus on running the business while we take care of the sale process.
Estimating business value
Working together with the owner of Abris CBI, we started by drawing a list of key criteria for setting a fair business sale price.
Typically, these criteria include, but are not limited to, physical assets, financial performance, market reputation, current employees, and the type and number of customers.
This is a delicate step. Entrepreneurs may have an emotional view of their business’s value that does not necessarily correspond to its actual financial value.
Financial and strategic analysis
After valuing the business, our experts carried out an in-depth financial analysis to identify the business’ strengths and weaknesses, gain a clear understanding of its growth prospects and define the best sale strategy. The objective was to maximize value for the seller while ensuring a fair transaction for the buyer.
Drafting a confidential information memorandum
We then drafted a comprehensive document containing all of the business’s relevant information, including details of operations, financials and target market. This document served as a presentation to potential buyers, enabling them to make an informed assessment of the proposal.
Searching for buyers
We maintain links with buyer networks. So, with the help of the business owner, we drew up a list of strategic potential buyers whom we then contacted. The aim was to find the best candidate, one who would appreciate the business’ mission and value.
Over 30 buyers expressed interest in Abris CBI. We selected the most promising ones and arranged to give them a confidential tour of the business. In the end, three buyers made an offer, which we submitted to Roger Guay.
Negotiating the terms of sale
Fully knowing the owner’s expectations and objectives, our experts subsequently negotiated the terms of the sale with the interested buyers. We act as the seller’s intermediary, looking after their interests and negotiating effectively and without compromise.
Overseeing the transaction
Once we had found the right buyer, we of course supported our client throughout the transaction. This very important step involves carefully scrutinizing the legal and financial aspects to ensure that everything is done by the book.
Coordinating the buyers’ financiers
To streamline the transaction, our experts coordinated communications among all stakeholders, including both parties’ bankers, lawyers and accountants. We also made sure that all shared documents accurately reflected the final agreement.
Supporting legal advisors
Thanks to our legal expertise, we were equipped to navigate the legal complexities of the sale process and thereby protect the seller by ensuring a smooth business transfer. The process took about four months.
“It all went smoothly,” said Roger Guay. “I was given two qualified buyers to choose from. The process was efficient and the result lived up to my expectations.”
The story didn’t end there. “I asked Dominic to estimate the value of my other business, Mégatex,” continued Mr Guay. “It turned out to be worth more than I had thought. The sale of Abris CBI had gone so well that I decided to sell Mégatex too. That was June 2021. The deal closed in late January of the following year.”
The process of selling an SME can be complex. Being properly supported is the key to a successful transaction.