Selling a company is probably the most important transaction you'll make in your professional life. And most founders arrive at that process unprepared, without proper advisors and, consequently, leaving money on the table. Here's how the process works without jargon.

The phases of a sale transaction

1. Phase 1: Preparation (2-4 months). Before talking to any buyer, you need your house in order. That means: audited or reviewed financial statements, organized customer and supplier contracts, clear legal structure, and a valuation that tells you what your company is really worth. This phase is the most important and the most ignored. Serious buyers do deep due diligence. If they find a mess, they use it to lower the price.

2. Phase 2: Buyer identification (1-2 months). Who could be interested in buying your company? It could be a competitor, an investment fund, a large customer, or a strategic player who wants to enter your market. Identifying the right universe of buyers is key to maximizing price.

3. Phase 3: The competitive process. The ideal is not to negotiate with a single buyer. When there are several interested parties, the price goes up and conditions improve. A well-structured process generates non-binding offers (LOI), lets you compare, and negotiate from a position of strength.

4. Phase 4: Due Diligence. The buyer will review everything: financial, legal, operational, tax. It’s the most intense phase. Here the agreed price is confirmed or destroyed. If your information is in order from phase 1, this flows. If not, it’s chaos.

5. Phase 5: Negotiation and close. The purchase agreement, representations and warranties, adjustment price, deferred payments (earnout) if any are negotiated. Here financial and legal advice is critical.

A real example

Steve had an IT services company with 12 years of history. A large competitor contacted him directly with an offer. Steve, excited, started negotiating alone.

When he contacted us, he had already revealed too much sensitive information and the buyer had all the leverage. We managed to reframe the negotiation, bring a second buyer into the process, and raise the final price by 35%.

What MOVA does in this process

We support you from preparation to close. We build the financial materials, coordinate due diligence and advise you on every decision so you close on the best possible terms.

If you’re thinking of selling, even if it’s in 2 or 3 years, the time to prepare is today.