BUSINESS OWNER PROGRAM
Range of Value
First step, estimate the marketability of your company. This informal analysis provides a range of what we believe a buyer prospect would offer for your business.

At no cost or obligation to you, we will review your financial statements and/or tax returns for the last three years. In addition to sending these items, please include promotional literature. If not included in the financial statements, please provide a separate list of officer's compensation. It will assist us with the analysis. Finally, include a listing of non-recurring expenses and a description of events that impacted, in a positive or negative way, on your operations. Include any other information that you would want the buyer to consider.

Once the analysis is completed we will schedule a meeting at our offices to discuss our findings and options. This is a free consultation that is intended to inform you of the alternatives you can select. At that time you can decide to stop or continue with the next step.

Business Appraisal
A third party, independent, appraisal is strongly recommended. Information needed would be the last three years of financials and completion of a detailed interview. We gather the required information, which significantly reduces the investment required. The appraisal is completed by an independent appraiser to assure that all parties in the transaction agree on the range of value and the methodology used.

We have affiliated with the oldest and largest business appraisal firm in the country. They have completed more than 8,000 evaluations in the last 20 years. Within three weeks from the time we submit the necessary data regarding your company, you receive a 100 page report--covering 11 valuation methods--as well as a suggested range and a suggested price for the business. This places you in control of the selling process, establishes the basis for discussion with buyers and eliminates any conflict of interest on our part.

Once you have the appraisal you can decide to stop, proceed on your own or engage us to represent you in the sale or merger of you company.

Business Transfer Service
Many consider our system unique in the field. Prior to taking on a business we review all financial data, interview the owners and discuss the sale price range in the appraisal. Finally we outline a marketing plan specific to the business. Only upon agreement of the business value, marketing plan and our compatibility as seller and intermediary does the selling process begin.

Offering Memorandum
One of the products is an offering package. This includes an historical summary of the business, financial statements and a range of value presentation following a complete review of the business by an independent due diligence CPA.

Reverse Due Diligence
The CPA looks at your business from the perspective of the purchaser to find anything that could be a problem. You are provided with a report and recommendations on actions to take. This approach reduces the potential for the buyer to uncover "problems." It is our opinion that the sooner these issues can be identified, the sooner they can be eliminated and not be an impediment to a sale. L.P. Grasso & Company includes this service in our fee.

Buyer Prospects
Concurrent with completing the Offering Memorandum, we develop a listing of buyer prospects. This process is based on conversations with you which identify your priorities and parameters in terms of the structure of the sale and your personal and financial goals. The list is rank ordered, separating primary from secondary prospects, to assure focus on the most qualified buyers. Prior to contacting the potential buyers, you review and approve the list.

Buyer Contact
Initially, prospective buyers only receive a one page "Acquisition Summary," emphasizing the positive aspects of the business without identifying name or location. Interested prospects respond, requesting the Offering Memorandum. They will be required to sign a Confidentiality Agreement and a Buyer Application, indicating their ability to purchase.

In order to maintain confidentiality direct mail and phone contacts are first conducted with primary prospects, the center of the bull's eye in a target. Only after eliminating this group is the larger secondary group contacted.

L.P. Grasso and Company screen all responses and, with the seller's assistance, provides additional information to prospective buyers. This approach minimizes disruption to the daily operations and maintains the seller's focus on running the business. The seller is always made aware of all contacts and the status of each prospect.

Representation
Negotiations are conducted as quickly as possible. A detailed term sheet, Letter of Intent, specifies the outline of the sale. This provides the buyer and seller with directions for professionals to construct an agreement that offers each a "fair deal."

Investment
The Business Appraisal investment is based on the nature and complexity of the evaluation. For example: Is a stock sale or asset sale? Is real estate involved? What is the potential for litigation? Are the financial statements compiled, reviewed or audited?

The Commitment Fee for the Business Transfer Service is due when you approve the Engagement Agreement. It is nonrefundable. At the Closing, L. P. Grasso & Company, Inc. receives a Success Fee on a sliding scale based on the total transaction value.

You are given credit toward the Success Fee for the Commitment Fee and the Appraisal Fee, if completed by our provider. Credit is also given for any travel expenses we charge, with your prior approval.