There are many steps to selling your business whether you use a business broker or sell it on your own. The primary reasons for using a business broker are to maximize your sales price and to help protect you after the transaction is complete, but also that the steps to the transaction should be laid out for you.
As a Seller, you can contribute to your own success in many ways. Remember that your view of the business may be different than the view of a potential Buyer. Surround yourself with a team of qualified transaction-oriented professionals around you who understand that your goal is to sell the business in a timely manner.
Prepare for the sale well in advance. Be sure your records are complete for at least several years back and do all pertinent legal or accounting “housecleaning”–as well as a literal sprucing-up of the plant or store. Be willing to stay involved. Consult with business broker to determine how you can best effect a smooth transition.
An Offer To Purchase specifies how the sale is to be structured. An Offer To Purchase specifies price, terms, and payment. It is usually subject to certain contingencies that are satisfied prior to the final transfer. Once an Offer To Purchase is written, we are obligated to present it to the seller, the seller then has three options.
If your business owns real estate, furnish legal description. If your business is buying real estate, furnish contract plus legal description.
If incorporated, furnish copy of certificate and articles or incorporation issued by the secretary of State. Copy of any leases. Projection of income and expenses for two years.
Many businesses do not advertise that they are for sale and we only work on an exclusive basis with our clients. We help manage the expectations of the Seller, price, terms, components of the sales process. We know the Seller’s business and can better prepare you for what to expect in the meetings. Personalities, client base, employees, etc.