Business Selling Guide
Want to sell a business?
Your business is important to you and it is important to us. After all, it’s not just a business. It is a living monument to your time spent, hours logged, sleep lost, and hard work. It is an accumulation of sweat, tears, achievement, and success. Have you thought about what would happen when you are ready to sell your business?
Why use a Business Broker?
There are many reasons why now is the time to get in touch with a professional.
- you deserve to get the best price for your business
- the sale of your business needs to be kept confidential
- you need to keep focused on running your business
- just because you are a great business owner, that doesn’t mean you will be a successful business broker in this situation
- we have an extensive database of buyers already looking to purchase
- the process is not often straightforward, and we can help you navigate it
- you will dramatically improve your chances of sale completion with professional support
- always remember that not all business brokers were created equal, so it’s important to get the right one on your side
The 10 Step Selling Process
Selling your business is a journey, and at the outset, you don’t need to decide whether you will actually end up selling. As you go through the stages, you will make those decisions along the way.
1. Initial Meeting
When we first make contact, we will arrange a confidential meeting to discuss your current position, personal aspirations, company performance, and a number of other factors. We will explain what we do, how we do it, and what you can expect from us.
2. Financial Recast and Opinion of Value
We will review your business in great detail. After having recast your financial records, will apply a number of different valuation methods to give you an opinion of value. This will include comparisons to similar businesses that have previously sold. This process leads us to a good idea of the expected value of your business.
This is your first commitment. However, at this stage, it is only that you would like us to confidentially market your business with a view to finding a buyer. We will obtain photographs, asset and inventory lists, and any other information that will enable us to create a listing, advertisements, marketing, and a Confidential Business Review, which is the buyer’s information brochure.
4. Advertising and Promotion
We know the most effective ways to get the word out to potential buyers that we have a fabulous business opportunity to offer them, without breaching the all-important confidentiality factor. We utilize the latest confidential marketing technology to promote your business. It will not only be included in the business multiple listing service, but it will be featured on over 100 different websites.
5. Buyer Inquiries and Qualification
All potential buyers that contact us are required to sign and enter into a non-disclosure agreement. We explain to them the importance and implications of maintaining confidentiality. They are also required to confirm that they are, indeed, in a financial position to execute a purchase if we do come to an agreement. Only then will we provide any further detailed information about the business. It will be in the form of a confidential Confidential Business Review, which is the brochure that outlines all of the details of the business.
6. Meeting Between the Parties
After having considered the Confidential Business Review, if the buyer is interested in moving forward in the process, then a meeting is likely to be arranged to bring buyer and seller together. Normally this takes place after business hours or away from the business site, in order to discuss the business and its performance to-date and ensure confidentiality.
7. Offer / Counter Offer / Agreement
If the buyer wishes to make an offer, we will get an official ‘Offer to Purchase’ from them. This will be presented to you. At this time, you may accept the offer, reject the offer, or make a counteroffer. We will assist the parties with negotiations, as we all try to find a meeting of minds and ultimately an Agreement to Purchase. At this time, a deposit will be provided by the buyer and held in escrow by the closing attorney.
8. Due Diligence
The buyer will have a pre-agreed upon amount of time to inspect all aspects of the business, including financial records. They will have the opportunity to ask questions and seek clarifications as they see fit. We will facilitate each step of the way and help to keep both parties working towards the same common goal: closing.
9. Prepare For Closing
Once the buyer has completed due diligence and the contingency has been removed, we then work on removing any remaining contingencies such as a lease or loan contingencies, and the closing attorney begins working on all of the searches for liens or outstanding liabilities of the business. You will then start communicating directly with the buyer to assist them in setting up everything they need to take over the business, such as licenses, utilities and vendor accounts to name a few. The closing attorney will prepare all of the documents for closing, and both parties will need to communicate with their office to ensure they have all the info they need.
The closing is our final step. Upon the signing and exchange of the documents, as well as the delivery of funds, the ownership of the business is transferred to the new owner.
The first step to planning and completing your exit strategy is to speak with us about your thoughts, plans, and goals. Remember, unless we get you to the closing table, with the deal that is right for you, we earn nothing! Give us a call for a confidential chat!