BASIC STEPS TO SELL A BUSINESS:
1. Find a qualified Business Broker:
- should have professional expertise in business valuations, acquisitions and divestitures
- has the qualifications, professional judgment, knowledge and experience
- has access to required meeting facilities
- fairness and ethics are central to the broker/agent's business values
- (Ace Business Ventures Inc. strives to meet these qualifications)
2. Set a price on your business (SEE - VALUE OF YOUR BUSINESS)
- undervaluing does not maximize returns to the seller
- overvaluing will discourage offers and could result in a lower than fair value result
3. Develop a Business Profile: (SEE - MARKETING YOUR BUSINESS)
- first impressions are important and the compiling of business information in a professional manner will assist in a successful outcome
4. Finding the buyer (SEE - MARKETING YOUR BUSINESS)
5. Review offers and meet buyers:
- after buyers are pre-qualified and the confidentiality procedures are in place, a meeting is arranged with the buyer and an agenda is set by your agent
- the agent should at all times be focused on confidentiality issues which could differ depending on who the buyer is
- the agent must also plan the build up of interest culminating in the letter of intent or offer and finally the purchase agreement
6. Work with buyers through the due diligence:
- after the basic price and terms are agreed on, other conditions have to be addressed before the deal can close
- these conditions could include the following:
- obtaining financing by the buyer including vendor financing
- transferring premise leases
- non-competition agreements
- management contracts
- confirming financial information obtained during the negotiation process
- confirming financial information could include access to the following:
- complete annual financial statements and related reports
- interim financial statements
- corporate tax returns
- detailed listings of major financial statement items
- production and marketing reports
- specific cheques and invoices
- minute books
- other documents
Your agent should provide you with detailed instructions as to what has to be done to ensure that the conditions are removed from the offer so that the deal can be successfully completed