STEP |
SELLER |
BUYER |
| 1 |
Plan and prepare.
- Organize your financial records.
- Clean and repair equipment.
- Normalize inventory; get rid of any inventory over one year old and obsolete inventory.
- Have a plan post closing.
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Plan and prepare.
- Organize your financial records.
- Discuss with key family members, especially spouse.
- Outline ideas for your ideal business, what you are, and are not, willing to do in a business.
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| 2 |
Retain a qualified broker.
- Talk to several, then choose only one to market your business: Rick Eggleton at BizSeller.
- Meet and discuss objectives.
- Discuss market and buyer expectations.
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Retain a qualified broker.
- Talk to several, then choose only one to help you search: Rick Eggleton at BizSeller.
- Provide necessary profile information and non-disclosure agreement.
- Meet and discuss objectives.
- Discuss market and expectations.
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| 3 |
Complete valuation.
- Provide information requested by broker who will provide you the valuation and reality check.
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Work with broker on finding businesses that meet your criteria.
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| 4 |
Broker prepares business profile.
- Detail historical performance.
- Identify growth opportunities.
- Prepare informational package for prospective buyers.
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Review business profile and summary financial information.
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| 5 |
Broker markets the business.
- Develop marketing strategy.
- Maintain confidentiality.
- Manage your business while BizSeller markets it.
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Arrange with broker a buyer/seller meeting.
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| 6 |
Broker identifies buyers.
- Interview prospective buyers.
- Obtain non-disclosure documents and buyer's profile.
- Arrange on site visits.
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Discuss with key family members and trusted associates.
- Beware the Ambush! While they may be well meaning, often their opinions are not fact or researched based; you are the expert.
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| 7 |
Broker prepares purchase agreement.
- Broker assists buyer in constructing an offer.
- Offer accepted, or, negotiations are facilitated by broker.
- All written agreements are signed.
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| 8 |
Due diligence.
- Buyer prepares information request for seller.
- Seller responds to information request within specified time frame.
- Broker amends offer in writing if needed.
- Broker helps buyer identify financing sources.
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| 9 |
Broker opens escrow.
- Closing documents prepared by escrow.
- Escrow handles all legalities surrounding transaction.
- Buyer and seller review documents.
- Broker helps resolve remaining contingencies and third party financing.
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| 10 |
Closing the deal.
With broker's input, seller and buyer plan announcement to employees and other stakeholders.
- Broker coordinates signing of documents and transfers funds to escrow.
- Escrow disburses funds as instructed in closing agreement.
- Seller transitions business management to buyer and provides training as agreed.
Deal done, training done and everyone moves on to a new chapter in their lives.
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