The Business Sales Process
Are you thinking about selling your business in the near future? if yes, then I am going to discuss the business sales process from start to finish.
Step 1, The business sales process begins by establishing the selling price. A market valuation based upon the cash flow of comparable businesses is a must in today’s market.
Step 2, Sign the agreement Forms to list the business for sale. The marketing agreement, which states the broker can list the business for sale and company resolution form, which states who owns the business will both need to be filled out and signed in order to list and market the business.
Step 3, the business owner will Fill Out A Seller Questionnaire. These questions and answers will help the broker to write an executive summary that is given to buyers and properly market the business in order to get you the best price.
Step 4, list the business for sale on the business search engines where buyers find businesses to buy. All sales are confidential, as the name of the business, address and photo of the business does not appear on any websites without the owner’s permission. The broker will qualify buyers and have them sign a Non Disclosure Agreement before they find out any confidential information about the business.
Step 5, meeting between the seller and buyer. The buyer can get a tour of the business at a time that is convenient for the owner.
Step 6, we receive an offer to purchase the business and negotiate terms. It’s important to have a business attorney ready to handle any questions. Failure to have a team in place will look like you are not serious about selling your business. In addition, a buyer will also sign a Purchase and Offer Acceptance agreement and will send in an escrow deposit.
Step 7, we are then in the Due Diligence Period, which allows the buyer to do a review of the books and records. An important part of this step is securing landlord approval to transfer the lease. Once this is all done, we are in the last step, which is the business is ready to close and be transferred to the new owner.