If you’re a founder thinking about selling your business, you’ve probably asked yourself: How do I make sure I get the best outcome when I sell?

At FirstCapital, we’ve developed a proven, five-stage SMART framework for doing deals, specifically designed to help founders achieve a premium exit. It’s not about just finding a buyer, it’s about finding the right buyer and closing the deal on the right terms, maximizing the outcome and avoiding nasty surprises along the way.

The SMART framework guides you through the M&A process, from developing the strategy for the transaction all the way through to a successful close. It’s based on deep insight into the tech ecosystem and regular dialogue with top-tier buyers and investors worldwide.

SMART stands for:

• S: Strategic Insight
• M: Marketing
• A: Access
• R: Rigorous Negotiation
• T: Transaction Close

Here’s how it works.

S: Strategic Insight

Every SMART deal starts with Strategic Insight. In this first step we go deep on why a buyer would want to buy your business and who is likely to want it most. To understand this, you need to understand not only what differentiates you as a business but critically also who your buyers are and what their strategic priorities are (including the less obvious ones). Only then can you ensure your business is positioned in the best possible way.

We’ve built a global network of strategic buyers over more than 25 years who we are in constant dialogue with. Drawing on this knowledge, and of the drivers of value in a deal, we identify where the real strategic demand sits to inform the potential buyer universe.

M: Marketing the Opportunity

Once we’re clear on the Strategic Insight and know who the target buyers are, we help craft a tailored story that delivers the key messages. We call this the Marketing step, because this is when we create the materials we will use to go to market.

Selling your company isn’t about just sending out a teaser deck to all possible buyers. It’s about telling your story in a way that resonates with the decision makers at your target buyers. It’s a description of what you do, presented in terms of what matters to them. First impressions count. If your pitch misses the mark or isn’t compelling enough you won’t get a second chance.

A: Access to Decision Makers

Even the best story doesn’t matter if it doesn’t reach the right people. In the Access step we leverage our relationships with senior leaders at global corporates and top-tier investors, which are long-held relationships built over years of dealmaking, and personally pitch your story. We get you in front of the decision makers, qualifying the conversations and making sure you are spending your time with the right people .

R: Rigorous Negotiation

Building competitive tension in a process helps drive the best deal. We negotiate hard with your buyers (this is the Rigorous Negotiation step), leveraging all of our experience on your behalf to agree the core deal terms in a Letter of Intent. We know how to be the “bad guys” in the conversation if necessary in order to get a key concession, handling the toughest conversations, while staying calm, focused and objective to get the result you want. Our track record is in delivering win-win deals that work for all parties, providing the foundation for long term success.

T: Transaction Close

Signing a Letter of Intent is only the beginning of the process of closing the deal. There’s still a lot to do before the cash hits the bank.

Once you’ve signed the LOI, you typically go into exclusivity with your preferred buyer. Now you need to close the deal as quickly as possible to avoid the risk of a change in terms. In the Transaction Close step we project manage all the parties involved in diligence, anticipating and solving problems before they become deal blockers and keeping to timetable. We support you in negotiating the commercial aspects of the deal documentation, and focus on ensuring that the deal closes in a timely manner on the terms agreed.

Want a SMART sale?
If you’re thinking about an exit, now or in the future, let’s talk. An exit is a process, not an event and the best time to start planning is now to you are ready when the time comes. Our SMART dealmaking framework could be the difference between getting a good deal and getting a great one.

Get in touch with the FirstCapital team.