The Process of Selling a Business

Once listed, our marketing efforts produce inquiries from potential buyers. From the initial inquiry the selling process generally takes the following form:

1.Confidentiality Agreement – First and foremost, a buyer who shows interest in your business signs a Confidentiality Agreement. At this time it is also appropriate for the buyer to complete our Buyer Acquisition Criteria Form.

2. Buyer’s examination of documents – This is a buyer’s initial examination of documents such as our confidential business review, summary financial print outs and supporting documents. Many out of area buyers will request a video/dvd of the business as well.

3. Preliminary discussions – In a meeting the buyer and seller discuss various aspects of the business; marketing practices, competition, ways to grow the company and any other factors concerning the company. The seller may also relate his reasons for selling (one of the first questions the buyer will ask) and the buyer can describe how his business background has equipped him to successfully operate the business.

4. Offer to purchase – An offer to purchase is an attempt to arrive at a satisfactory selling price and a general agreement outlining the terms and conditions under which a transfer of the business will take place.

5. Purchase and sale agreement – This document formalizes the deal and will encompass the elements of the offer to purchase and will detail other factors that may have arisen during the negotiations.

6. Closing – Throughout the complex process from preparation to purchase and sale agreement, your goal has been to arrive at the closing.

Throughout the selling process, it is important that you keep running your business. At all times, you must be able to present your business as an ongoing, successful and profitable operation.