The Divestiture Process, Step by Step
by M. Eric Furlow

  1. Sign the Consulting Agreement
  2. Prepare a “Blind Overview”.  This is to inform buyers of the basics of your             business without them knowing who you are.  The deal lists sent with this         document contain blind overviews of many companies.

    Examples:
    Website Development company, established in 2004, with annual revenues of $210,000. 2006 sales growth was 25%.  Company specializes in custom website development and e-commerce and owns rights to a variety of source code, including market ready applications.  Healthy repeat business and recurring revenue programs. Offices are located in a 2,000 square foot facility, which includes space and facilities for hosting.

    Shared web hosting company with approximately $645,000 of annualized recurring revenues.  Uses Modern Bill and Cpanel control panel.  There are approximately 3,850 accounts.  All Windows.  The company co-locates company owned servers Linux shared web hosting company, hosting approximately 2,700 accounts with monthly revenues of $32,000, annualizing to $384,000. The company provides a proprietary Control Panel and uses IspEasy for billing. The company owns its own equipment and all servers and equipment are located on site.

    Dedicated/Managed server hosting company with monthly revenues of approximately $95,000.  Approximately 725 customers.  The majority of servers are Linux with a few Windows boxes.  Servers are owned and are co-located in a data center in NJ.

  3. I will then send the Blind Overview out to 900+- active, or formerly active, buyers of Internet assets around the world.  It is important to note that the 900+- contacts include the other brokers and consultants who work in the Internet space around the world, who in turn will send the Blind Overview out to all of their buyers.  So the Blind Overview gets circulated to possibly a few thousand people around the world.
  4. We create a Company Overview which is created from the information on this list.        http://www.furlowconsulting.com/isp.htm
  5. When a prospective buyer responds to the Blind Overview, I have them sign a        Non-Disclosure Agreement … only then do I send them the Company Overview. 
  6. Buyers will have follow-up questions, conference calls, and then they will send in   a letter of intent.

This process can take as little as 3 weeks, or more common 6-9 weeks.