| If you are looking for information on how to sell a | | | | fuller information package on the business that |
| business, here is a quick summary of the steps | | | | would include information about the operations of |
| that are usually required. Selling a business is | | | | the business, number of employees, a brief |
| typically a much more involved process than | | | | summary of the financial performance and any |
| selling real estate. It takes a specific set of skills | | | | other pertinent "general" information about the |
| to properly sell a business and get a fair value. It | | | | business. This general information is under strict |
| is highly recommended that you use the services | | | | non-disclosure rules to help ensure confidentiality |
| of a business broker. | | | | of the sale. After reviewing this information, a |
| Listing your Business for Sale with a Business | | | | potential buyer may decide if they want to take |
| Broker | | | | their interest to the next level. This is a major |
| Meet with a reputable business brokerage. Talk to | | | | way a business broker can assist you in how to |
| them about the sales process and what they will | | | | sell a business. |
| do to help you sell your business. Listing your | | | | Showing the Business to a Qualified Buyer |
| business with a broker is a good decision if you | | | | Presenting a business to a potential buyer is a |
| want to sell your business confidentially and want | | | | major step in how to sell a business. It's important |
| to use the resources of a professional | | | | to present an accurate picture of the business - |
| intermediary to guide you throughout the process. | | | | blemishes and all. Buyers can be jaded after a |
| Determine a Selling Price | | | | while and realize that every business may have |
| One of the first things that arises when people | | | | their speed bumps so it's important to be |
| ask how to sell a business is the asking price. This | | | | forthright and not sweep anything under the rug, |
| is something that a business broker can help you | | | | so to speak. This is, however, the time to 'show |
| with for most businesses. For larger or more | | | | off' your business's accomplishments and |
| complicated businesses you can use the services | | | | showcase the hard work you have done to make |
| of a professional business evaluator to determine | | | | it a success - this is the time to put your best |
| the selling price. You also need to think about | | | | foot forward and, effectively how to sell a |
| what you are selling - for instance, are you selling | | | | business by being honest - which can be |
| the business assets or shares (there are tax | | | | refreshing to some buyers. There will be a lot of |
| implications - most small businesses are structured | | | | questions at this point from the buyer - try to |
| as asset sales though). You also need to think | | | | answer everything you can, within reason though. |
| about work in progress at the time of the sale | | | | It's important to remember that there is a point |
| and how that will be transitioned and at what | | | | where a buyer needs to make a conditional offer |
| price, inventory, accounts receivable, etc. These | | | | and satisfy themselves through the due diligence |
| are issues you can talk to a business broker | | | | process. |
| about as well as your accountant. Determining a | | | | Getting an Offer and Accepting an Offer |
| selling price and what exactly is for sale is an | | | | The majority of business offers are conditional |
| important step in how to sell a business. | | | | offers. They are can be conditional on many |
| Business Information Profile | | | | different issues: confirming some facts during the |
| Business buyers will need a brief 'snapshot' of | | | | due diligence process, getting financing, assuming |
| what your business is about - a small 'teaser' if | | | | leases successfully, obtaining franchise approval, |
| you will, to help them decide if they want to learn | | | | etc. A condition offer is usually made with a |
| more. A business broker with the knowledge of | | | | refundable deposit (if the deal does not go |
| how to sell a business will put together this quick | | | | through) and is usually seen as being without risk |
| (and very effective) brief snapshot of your | | | | for the buyer until they waive conditions and go |
| company. It is a short description with one or two | | | | 'firm'. |
| lines of general financial performance. | | | | Due Diligence |
| Marketing and Advertising to Attract Buyers | | | | During the conditional offer phase, a business |
| A business broker will plan how your business will | | | | buyer will conduct their due diligence - which is a |
| be marketed and advertised with the end goal of | | | | critical step in how to sell a business. Here, the |
| achieving multiple interested potential buyers while | | | | potential buyer will confirm facts, go through |
| maintaining the confidentiality of the business sale. | | | | financial statements and review the overall |
| Qualify Potential Business Buyers | | | | business operation very carefully. If there ever |
| Upon showing interest in the business, a potential | | | | was a time for a buyer to be extra meticulous, |
| buyer would then have a conversation with the | | | | this would be it. The role of the broker would be |
| business broker about themselves, their | | | | to help in facilitating the process and be a |
| objectives and what they are looking for. The | | | | go-between for the buyer and the seller. |
| broker will 'qualify' and screen a potential buyer at | | | | If the buyer satisfies themselves that everything |
| this point. A business buyer will be qualified on | | | | 'checks out' during the due diligence process and |
| financial ability, aptitude for the business, | | | | waives the other conditions the next step is to |
| "seriousness" and other factors. If deemed to be | | | | close the transaction - which involves signing |
| appropriate, a business broker will invite the | | | | documents through respective lawyers and |
| potential buyer to sign a non-disclosure agreement | | | | exchanging money. |
| and then would present the potential buyer with a | | | | |