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10 STEPS TO SELLING YOUR BUSINESS
Step 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.
Step 2. Retain your broker: Rick Eggleton at BizSeller.
- Meet and discuss objectives.
- Discuss market and buyer expectations.
Step 3. Complete valuation.
- Provide information requested by broker who will provide you the valuation and reality check.
Step 4. Broker prepares business profile.
- Detail historical performance.
- Identify growth opportunities.
- Prepare informational package for prospective buyers.
Step 5. Broker markets the business.
- Develop marketing strategy.
- Maintain confidentiality.
- Manage your business while BizSeller markets it.
Step 6. Broker identifies buyers.
- Interview prospective buyers.
- Obtain non-disclosure documents and buyer's profile.
- Arrange on site visits.
Step 7. Broker prepares terms sheet.
- Obtain offer from buyer(s).
- Identify acceptable offers.
- Facilitate negotiations.
- Gets all written agreements signed.
Step 8. Due diligence.
- Buyer prepares information request.
- Owner responds to information request in a timely manner.
- Broker amends offer in writing if needed.
- Broker helps buyer identify financing sources.
Step 9. Broker opens escrow.
- Closing documents prepared by escrow.
- Owner and buyer review completed documents.
- Broker helps resolve remaining contingencies and third party financing.
Step 10. Closing the deal.
- With broker's input, owner 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.
- Owner transitions business management to buyer and provides training as agreed.
Deal done, training done and everyone moves on to a new chapter in their life.
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