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Sale of Business Unit (SBU)

Selling A Biz
It is all about the Exit.
Every entrepreneur will reach this point, either by choice or by circumstances.
 
The former is a pre-planned, architected last stage of a roadmap that was dreamt up years before.  This is the type of Exit investors are seeking.  If you have reached this point, congratulations!
 
The latter may be due to business challenges such as low demand, raising overheads and raising employee-attrition.  This type of Exit is known as a fire-sale.
Benefits of An Architected SBU
  • Investable BU; investors will come to you = Power to negotiate
  • Accountability to stakeholders & shareholders
  • Great ROI for investors, management & staff
  • Career-planning for employees
  • Relatively quicker, easier & low cost 
CONTACT US BY CLICKING HERE.
Whatever the purpose, the SBU process is extremely technical and multi-staged:

  1. Client-consultant Match. Meeting with Client to check for chemistry, time-line allowance, Ask etc.

  2. Technical assessment of suitability of sale (market-rates, buyers' profiles, financial ratios, etc).

  3. White-washing (creation of business decks, financials, legal etc)

  4. Marketing & Public-relations

  5. Investor-Relations Info-Sessions (IRIS)​​​

    • Presentation​

    • Negotiation

  6. Confirmation of terms of SBU

  7. Hand-Over Take-Over (HOTO) procedures

  8. Contract Signing

  9. Post-sale Itinerary (PI)

  10. Contingency Management

CONTACT US BY CLICKING HERE.

FAQ:

  1. What can go wrong if the SBU is not professionally administered?

    • Low Return-on-Investment.

    • Disputes leading to claw-back of investment.

    • Litigation (buyer may sue for misrepresentation)​.

  2. How does the SBU service work?

    • Client(out-going business owner) appoints SEED Ventures as Virtual CFO(VCFO).  Click here to access SV's website.

    • SV accesses BU and if suitable, appoints us for execution.​ 

      ​​​​​​​​​​​​

  3. What are the professional fees involved?

    • Mandate fees starting from USD20,000 (one-off)*

    • Success fees starting from 20%*

    • See here for details.

      *3rd party costs and disbursements are not included.

  4. For now, my company only requires a valuation report.  Are you able to assist and if so, how do the costs work?​

    • ​Yes, we do provide valuation services at the following rate:

      • Cost: USD2,000 onwards

      • Lead time: <14 days  upon full submission of required company information
         

  5. Who are the administrators and are they qualified?

    • Yes, professionally administered by professionals including chartered accountants, practicing management consultants and venture capitalists.
       

  6. Due to cash-flow issues, my BU has to be off-loaded within a month.

    • It is unlikely for the SBU to be completed within a month.

  7. What if the case is accepted, but it takes too long to close?

    • Both SV and the client's interests are aligned in the sense that both parties seek a successful transaction, as quickly as possible.  

    • Fees.  Success-fees are paid only upon completion of transaction and payment made.

  8. What is the execution timeline?

    • Typically between 1 - 3 months.
       

  9. What if the process drags beyond 3 months?  Will I be billed more?

    • No, there will be NO additional fees payable to the team, even if the process drags beyond 3 months.

    • The mandate fee is a one-time fee to prevent bill-shocks.  This control ensures both business owner and team are aligned to ​offload the BU as soon as possible.
       

  10. Why can't the job be done by a broker such as a property agent?  

    • A broker may act as eyes on the ground.  However, the actual work is extremely technical and must be performed by licensed professionals.

    • There are 9-items outside the scope of a regular broker expertise such as valuation, due diligence and legal matters.
       

  11. Is there a guarantee that the business can be sold at the desired asking price?

    • ​A guarantee cannot be realistically put in place as many external factors are involved, such as market conditions and state of relationship amongst shareholders.

    • The team will try its utmost best to offload the business unit at as high a price, and as soon as possible. 
       

  12. I am interested.  How shall we proceed?

    • Please contact us by clicking on the contact link beyond.  We will get back to you within 24 hours.​

    • Our team will first conduct a short telephone interview (approx 10 minutes), followed by a visit at your business premises to perform some discovery and scoping working.

      CONTACT US BY CLICKING HERE.

 

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