Free Report: 10 Major Steps in the Process of Selling a Business
Download this Free Report and Learn:
- What an Information Memorandum is and what it should include
- The different types of buyers and the process for identifying buyer candidates
- What to expect during the due diligence process
Critical knowledge for any business owner in the account receivables industry
10 Major Steps in the Process of Selling a Business
The sale of a business is typically the single-most significant event in an owner’s business life. As most owners have never sold a business, any apprehension is understandable. If you are contemplating or preparing for the sale of your company, we believe it's critical to understand the typical components of a deal so that you will be ready to embark upon this journey. And it is a journey. Each transaction is different and comes with its own special circumstances. To illustrate this process, we've created an example case based on one of our firm's recent transactions. To preserve confidentiality, we’ll call the selling company "Company, Inc."
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What is an Information Memorandum?
Sometimes called "the book" or "the memorandum," this piece describes the selling company so buyer candidates can gain an initial understanding of the opportunity. It can be less than 10 pages or more than 75 pages, or you and your advisor may choose to limit it to just an executive summary, with additional information to be provided at a later date to serious buyers only.
Download 10 Major Steps in the Process of Selling a Business and discover key factors and requirements for creating an information memorandum, including:
- Best practices for confidentiality
- Regulations for client concentration and disclosure of clientele
- How to illustrate the true cash flow of the business under new ownership
Download the FREE 10 Major Steps in the Process of Selling a Business Report now!
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How Does a Seller Identify the Right Buyers?
While you are preparing your information, you'll also need to determine who you will approach from the vast universe of potential buyers. Depending on the size of the company, you might approach large industry buyers, high net-worth individuals, financial buyers, or perhaps buyers from related industries.
Download 10 Major Steps in the Process of Selling a Business and discover:
- How engaging an M&A advisor that specializes in your industry can give you an advantage
- Why it's important to select the right type and number of buyers for your business
- How to analyze and respond to unsolicited offers
Approaching Prospective Buyers
Download 10 Major Steps in the Process of Selling a Business and discover:
- Why it's important to reach the key decision makers and authorities among your prospective buyers
- How to maintain confidentiality during the buyer prospecting process
- Best practices for communicating with prospective buyers
Download the FREE 10 Major Steps in the Process of Selling a Business Report now!
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Executing a Confidentiality Agreement
An extremely important aspect to any deal is keeping it under wraps until the appropriate time. If the word gets out prematurely, it can be detrimental to the sale of your business, so you need to maintain control of when clients, staff, or competitors learn about the sale. Interested parties who respond to the initial approach should be immediately asked to execute a confidentiality agreement.
Download 10 Major Steps in the Process of Selling a Business and discover the rest of the critical steps for selling your business.