The Process of Selling Your Business

While most people may sell and buy multiple homes and autos in their lifetime the chances are that most people will only sell one business in their lifetime Hence it is very critical to have someone with you who can support you through all the steps in this complex process Following gives you an idea about what is involved in selling a business

Step 1:Consult a professional

1.Meet and discuss objectives 2.Discuss market and buyer expectations 3.Execute representation agreement

Step 4:Business Profile

1.Detail historical performance 2.Identify growth opportunities

Step 2: Plan & Prepare

1.Organize your financial records 2.Clean / repair equipment 3.Normalize inventory 4.Evaluate your financial needs Post Closing

Step5: Market the Business

1.Develop marketing strategy 2.Maintain confidentiality 3.Manage your business while broker markets it

Step 3: Complete valuation

1.Understand evaluation techniques 2.Decide if you need third party valuation 3.Determine asking price

Step 6: Identify Buyers

1.Interview prospective buyers 2.Obtain non-disclosure documents 3.Arrange on-site visits

Step7: Offers

1.Obtain offers from buyers 2.Identify acceptable offer 3.Facilitate negotiations 4.Prepare for due diligence

Step 8: Due Diligence

1.Respond to information requests 2.Amend terms if necessary 3.Help buyer identify financing sources

Step 9:Open Escrow

1.Draft closing documents 2.Review completed documents 3.Resolve remaining contingencies and third party financing

Step 10: Closing:

1.Plan announcement to employees and other stakeholders 2.Sign documents, transfer funds and pay broker 3.Transition management to Buyet