What’s the Process of Selling Your Business?
Here’s an overview of the steps that will take you from your initial meeting with your business intermediary to the closing table to sell your business.
During the initial meeting with your business intermediary, he will review all of the procedures that will be followed to sell your company. At this time you will also be advised of all pertinent data you will need to collect and provide for the sale. Your business intermediary will also thoroughly explain the process from consult to closing so that you will know what to expect each step along this journey.
Gathering the Details
Your business intermediary will have you complete a questionnaire to help in gathering information about the history of your company, its financial position, and its position in your particular industry. This information aids in the evaluation of your business.
Valuating Your Business
Several business valuation methods can be utilized when valuating your business. The size and complexity of your business will determine the depth and breadth necessary to complete the valuation. Armchair valuations or opinions of value derived from simply one initial meeting alone are inaccurate and not comprehensive. A certified business intermediary will derive the true value of your business through an in-depth valuation.
Once you have a complete understanding of the procedures involved, you and your business intermediary will execute a listing agreement, which allows him to begin to market and sell your business.
Compiling a Confidential Profile
An overview of your business, with key facts and highlights of your business will be prepared to assist buyers when learning about your business. This confidential profile will include the history of your company, description of its facilities, financial information, service and product information, your reason for selling, and the overall strengths of your businesses.
Marketing Your Business
Your business intermediary, based on the appropriate market, will develop and execute a customized marketing plan to discreetly and selectively advertise the business opportunity. This confidential approach will yield results while protecting your business’ proprietary, financial and other pertinent information from being disseminated to the general public.
Finding a Buyer
Your business intermediary will carefully screen all prospective buyers background, financial resources, experience and qualifications before they have access to any information about your company. Additionally, the potential buyer will be required to sign a confidentiality agreement before he or she receives any confidential information about your business.
While price is only one factor in negotiating a sale, your business intermediary will work with you and potential buyers to find the right fit for your business and for all parties involved. Your business intermediary will lead these negotiations; offer recommendations and work to achieve the best possible outcome.
Most deals fall apart during due diligence. Experienced business intermediaries are experts at navigating due diligence.
The Big Day
Closing day can be bittersweet, pure joy or just another day in your life. No matter which, working with your business intermediary, the closing transactions will be completed so that the transition to the new ownership is as smooth and fruitful as possible.
Cress V. Diglio, Florida Business Broker
Cress V. Diglio is a Certified Business Intermediary (CBI), a Merger & Acquisition Master Intermediary (M&AMI) and the past chairman of the International Business Brokers Association (IBBA).
Whether you are looking to buy a business, sell your business or merge with another business, Florida Business Broker Cress V. Diglio has the experience to assist you in all facets of the transaction. Call Cress today for complete transaction support and expertise, 888-984-4208, or visit https://floridacertifiedbusinessbroker.com.