How To Sell Your Business – Steps In Selling A Business
Here are the steps in successfully selling a business, with a Business Broker, from our initial meeting to business valuation, preparing the offer, escrow, SBA financing, and closing.
The first step is to determine the value of your business, but before that, we will answer all of your questions about the process, our experience, confidentiality, etc.
No Upfront Fees & Free Market Value Analysis
To start things off, we do not charge any upfront fees and we offer a free market value analysis. After we have answered your questions and learned about your business, the next step is to determine the market value of the business. The process is outlined in the info graphic here.
Taking Your Business To Market
We prepare a Free Market Value Analysis prior to listing your business to determine market value. After the Representation Agreement is signed we prepare the CIM (Confidential Information Memorandum) for your business which is the prospectus sent to buyers after they sign the NDA.
Buyers – Sourcing & Qualifying
As inquiries are received we send prospective buyers our NDA and Buyer Profile and then proceed to qualify them. Buyers receive a copy of the CIM after they have signed the NDA and we have screened them.
Preparing The Offer and Negotiations
We prepare the offer with the Buyer and review it with you. We facilitate the negotiations between you and the buyer.
Due Diligence
Buyer verifies the earnings and revenue claimed in the business as well as evaluates the overall business.
SBA Financing
We work with the buyer to submit his SBA application, and the seller in submitting the necessary financial statements. We have several SBA lender we work with that offer up to 90% financing for qualified buyers and businesses.
Escrow & Closing
When Due Diligence is completed, The Due Diligence Contingency is removed, and Escrow is opened. Escrow prepares the documents and sends them to the buyer and seller.
Training & Transition
This is typically 4 to 6 weeks which is included in the Purchase Agreement at no cost to the buyer. If additional training or consulting is required a consulting agreement is negotiated.
