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Tuesday, May 31, 2011 Terry Welsh
There are many valua tion methods that can be applied to businesses for sale and sometimes we make the mistake of thinking that they are critical to the analysis of the business we are buying or selling.  Relevant, yes.  Critical, maybe not.  The reason that I write this is that the sale of your business is unique.  Your business has an unexplored upside and a history of financial stability.  It is not the same as other businesses in your industry.  It is not the...Read More

The Business Sale Process

1. Introductory meeting
  • Gain an understanding of the prospective seller’s business
  • Learn seller’s personal needs and objectives
  • Profile Bridgeview Brokers
  • Explain the steps in selling a business as well as key documents
  • Request information required for business valuation 
2.  Estimate business value 
3.  Second meeting
  • Review results of value analysis and key variables affecting value
  • Gather additional information from seller
  • Determine if market value range is acceptable to prospective seller
  • Explain sales process in more detail and protection of confidential information
  • Provide additional information including Representation Agreement
4.  Prepare and sign a Representation & Listing Agreement
5.  Develop and implement the marketing plan and materials
6.  Prequalify business for financing
7.  Screen prospective buyers
  • Confidentiality agreement
  • Client Buyer Profile (financial ability, operational capability)
  • Meet and discuss questions and next steps 
8.   Coordinate Seller meetings with prospective buyers 
9.   Facilitate additional questions and answers
10. Letter of Intent 
11. Purchase and Sale Agreement (includes reviews by attorneys)
  • Earnest money deposit
  • Prepare timelines and gain approval, then manage process
12. Due Diligence
13. Financing, lease assignment, non-compete agreement
14. Purchase price allocation (with CPA recommendations)                                   
15. Closing (though Escrow company)
16. Transition (training)