What are the most imporatnt steps we need to take to sell a business?
When selling a business, there are so many important steps that you need to take in order to make sure you land a great deal. You need to be aware of the process of selling a business. It is because selling a business is a very complex process to go through. And the next and one of the most important step you need to take is to get a help of business broker who can find the potential buyer and help you get the best deal. http://floridabusinessbrokers.trufortebusinessgroup.com/
Step 1 – Preparation
First and foremost, you need to get the company and its records in order. This could take anywhere from two to six months, sometimes longer.
Step 2 – Valuation
The value of any company at a point in time is usually calculated as the net present value of its future earnings potential.
Step 3 – Identifying Prospective Buyers
Strategic buyers in your industry and financial buyers, such as private equity firms, are your best prospects.
Step 4 – Contacting Prospective Buyers
Your advisory team will contact prospective buyers and have them sign a Confidentiality Agreement before they receive any specific information regarding your company.
Step 5 – Responding to Buyers’ Questions
You and your advisory team will work collaboratively to provide details to interested buyers explaining any areas of uncertainty and clarifying all matters to the satisfaction of the proposed purchaser.
Step 6 – Receipt of Letters of Intent
These non-binding letters outline the price and structure of the proposed transaction, as well as the broad terms and conditions of the prospective buyer.
Step 7 – Negotiation of Final Letter of Intent
A very important intermediary role for your advisory team. This is when the major terms and conditions of the transaction are negotiated and finalised.
Step 8 – Buyers Due Diligence
At this stage, the buyer will want to review all legal, accounting, tax, banking, human resources, IT , real estate, and other material contracts.
Step 9 – Legal Documentation
Your team will work with the lawyers on both sides to negotiate the details of the transaction that will be found in the legal documents.
Step 10 – The Closing
The documentation is signed, funds are transferred, and the business changes hands. And now it’s time to celebrate!
