| 1. |
Consider all personal and financial
ramifications. |
| 2. |
Assess the performance of your business and
take steps to maximize provable bottom-line cash flow. |
| 3. |
Establish a sales price. You may already have a
“magic number” in mind or prefer to utilize a simple valuation
program that will provide an estimated fair market value for
your business. Click here to learn more. A valuation report will
greatly enhance your ability to justify the asking price during
the negotiation process. |
| 4. |
Identify the type of buyer most likely to buy
your business. This will save a tremendous amount of time during
the buyer qualification process. |
| 5. |
Assemble a team of professionals that you can
rely on if needed (CPA, Financial Advisor, Attorney). |
| 6. |
Put together a business profile for
presentation to potential buyers. Click here to learn more.
|
| 7. |
Determine the level of confidentiality needed
and advertise your business for sale. Keep in mind that 90% of
buyers begin their search for a business on the internet. |
| 8. |
Prepare a Cash Flow Worksheet or Discretionary
Earnings Worksheet and gather supporting financial statements
and/or tax returns. A sample worksheet is complimentary with our
Showcase level membership. |
| 9. |
Have potential buyers execute a Nondisclosure
Agreement and Buyer Qualification Sheet prior to any detailed
discussions or information sharing regarding your business for
sale. These forms are also complimentary with our Showcase level
membership. |
| 10. |
Enter into a non-binding Letter of Intent /
Earnest Money Agreement. |
| 11. |
Cooperate with respective buyer’s due diligence
or further investigation requirements. |
| 12. |
Negotiate final details such as price, terms,
assets included, seller’s post-sale obligations, etc and execute
a formal Purchase Offer Contract or Sale Agreement. |
| 13. |
Have an attorney, title company or business
closing agency prepare all legal and financial transfer
documentation and set a closing date. |
| 14. |
Comply with any Bulk Sales Laws (requirements
vary by State). |
| 15. |
Close the sale and turn over possession of your
business. |
| 16. |
Complete all seller post-sale actions as
previously agreed to. |
