By Oliver Bogner, Managing Partner — The Advisory Investment Bank
Most founders only sell a business once.
And when that time comes, the process can feel like a black box.
What does a banker actually do?
What happens behind the scenes?
And how does the right process add millions to your outcome?
At The Advisory Investment Bank, we’ve guided hundreds of founders across HVAC, plumbing, pest, landscaping, electrical, and fire safety through the sale process.
Here’s exactly what it looks like — step by step.
1. Discovery: Understanding Your Story
Every engagement starts with a conversation.
We’ll sit down with you — virtually or in person — to learn your story:
how you built your business, what makes it unique, and where you want to go next.
This is the discovery phase, where we assess fit and alignment.
If both sides are confident it’s a good match, we formalize the relationship through an engagement agreement.
At The Advisory, we only represent sellers — never buyers.
That means our sole focus is maximizing your value and protecting your interests.
2. Valuation: Finding the True Market Value
Once engaged, we dig into the numbers.
Our team conducts a full financial analysis — reviewing tax returns, P&Ls, balance sheets, and all relevant add-backs to determine your adjusted EBITDA.
Why adjusted EBITDA?
Because that’s the number buyers actually value.
Private equity firms and strategic buyers pay multiples of adjusted earnings — not what’s reported on your tax return.
We then benchmark your performance against recent transactions and active buyers to calculate what the market will realistically pay for a business like yours.
By the end of this phase, you’ll have a clear, defensible valuation and a data-backed strategy for maximizing it.
3. Preparation: Building the Marketing Story
With your valuation set, we move into positioning.
We build what’s called a Confidential Information Memorandum (CIM) — a private document that presents your business to potential buyers.
This is more than just financials — it’s your story.
Your market position, leadership team, customer mix, and growth potential.
We pair this with a targeted buyer list — typically 50–150 private equity firms and strategic acquirers actively buying in your industry.
Then, we go to market.
4. Going to Market: Creating Competition
This is where we create momentum.
We contact buyers confidentially — so your employees, competitors, and customers remain unaware the business is for sale.
Within weeks, we start receiving Indications of Interest (IOIs) — initial offers outlining high-level value ranges and deal structures.
We vet the buyers, assess strategic fit, and coordinate management meetings, where you’ll meet with top candidates, share your vision, and evaluate who’s the right long-term partner.
This stage is all about leverage.
The more competition we create, the stronger your terms become.
5. Negotiation: From LOI to Diligence
Once you’ve met the top buyers, we call for final bids and negotiate Letters of Intent (LOIs) — formal offers outlining purchase price, structure, rollover equity, earnouts, and key terms.
This is where our role becomes critical.
We negotiate every component of the deal:
- Cash vs. equity — how much you take home at closing versus your second bite.
- Structure — earnouts, rollover equity, and contingencies.
- Working capital and adjustments — to protect you from post-close deductions.
After signing the LOI, the buyer moves into due diligence — a 60–90 day review covering financial, legal, HR, and operational details.
We manage this process from start to finish, keeping momentum, preventing delays, and protecting your leverage.
6. Closing: The Finish Line (and New Beginning)
Closing day is the culmination of months of preparation and negotiation.
Funds are wired. Documents are signed. And you officially transition your business to its next chapter.
But for us, the relationship doesn’t end there.
We stay close post-close — helping with integration, ensuring earnouts are tracked, and supporting your transition.
Because selling your business isn’t just a transaction.
It’s a legacy event.
The Bottom Line
Working with an investment banker isn’t about losing control — it’s about amplifying your outcome.
The right banker brings structure, competition, and strategy to the process — turning good offers into great ones.
At The Advisory Investment Bank, our mission is to represent Main Street founders — not Wall Street buyers.
We help essential-service business owners achieve Wall Street-level outcomes, with Main Street values.
Contact: info@theadvisoryib.com
Learn more: theadvisoryib.com
Because the best deals don’t happen by chance — They happen through process.
