Selling a Business
Even with all of the information about exiting a business available today, many small business owners will either need or desire to have professional help. The usual reasons for seeking a business broker are time and process. My process for managing the sale, evaluation through closing has been improved and updated over three decades of assisting small business owners. Here’s what happens when you contact me for a first visit:
- A walk through your business and a listening session to understand what you’re considering selling, an overview of the operations, your initial ideas concerning a sale and who would be involved in the decision making. You can ask me about anything related to my business and process.
- If, after the first meeting you decide to utilize my service, I’ll collect the relevant financial documents from you to offer my Price Range Opinion. From that you’ll be able to see if it meets your financial needs after the sale or if the current market is the right time to sell.
- If, after step 2 you decide to engage me to sell your business, we will complete a listing contract that allows my firm to market your business at a certain price, for a defined period of time and for a success fee payable at closing.
- I will produce a Business Profile for buyers that will allow qualified prospects the basic information needed, business type, assets, cash flow, etc. to refine their potential for a sale. I only provide information to prospects on an as needed basis after confidentiality and non-disclosure is completed. I will also assemble a more complete financial and operations package for prospects that you agree to furnish to and a prospect that has made an offer to complete due diligence.
- Marketing your business will be tailored to your particular needs. As one of the earliest brokers to market business opportunities successfully via the Internet, your business will get multiple online and print advertising while maintaining the required level of confidentiality.
- Qualifying prospective buyers is on an individual basis. All will be required to prove how they will pay for the business and show a certain level of competency before discussing your business. This is a very important step in the process. A very small number of prospects from advertising are actually able, capable or motivated to buy in a specific time frame. I’m a great listener and after thirty-one years my skill level in this area is high.
- Offers to purchase will often be either a Purchase Agreement produced by an attorney or a Commercial Property Contract with addendums promulgated by the Texas Real Estate Commission. I am obligated to bring all offers to you. However, the offer should be in the price range if all others steps above are followed. A business sale happens when both sides are motivated to make it happen. My job is to facilitate the process.
- Due Diligence is when, after a deal is made, the buyer is provided the complete financial and other information provided by the seller. At this point the buyer satisfies the verification of all information received that the offer was based upon.
- The Closing will take place either in a law office, business closing office or a title company if real estate driven.