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Selling A Business |
C. G. Reicher Associates provides a methodical, three-phase approach to transferring business ownership. While every transfer process is unique, here is an overview:
Phase One
Preparation
n Understanding owner’s objectives and the firm’s position in the marketplace.
n Analyze company data to determine price and terms (valuation) which are consistent with the marketplace and the owner’s objectives.
Prepare Marketing Package
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Organize the documents needed for marketing including year-to-date financials, 3 to 5 previous years of financials and tax returns, asset and equipment list, summary of company information.n Research and analyze the industry.
n Define and identify potential buyers or buyer criteria and profile.
n Prepare Confidential Memorandum, Marketing "Blind" Profile.
n Execute Listing Agreement and parallel documents.
Phase Two
Marketing, Buyer Interviews
n Contact potential buyers via letters, phone calls.
n Secure buyer’s profile, confidentiality agreement and financial statement.
n Pre-qualify buyers based on financial ability and fit.
n Educate buyer about deal requirements, company information
n Arrange meeting/s with owner and potential buyer.
Phase Three
Negotiations and Sale
n Buyer presents the Letter of Intent to seller.
n Letter of Intent is negotiated and signed by both parties.
n Letter of Intent transferred into Offer to Purchase.
n Execution of Offer to Purchase by both parties.
n All documents within Definitive Agreement are finalized and reviewed.
n Buyer completes Due Diligence (1-3 weeks)
n Buyer's financing is completed.
n Date, time, location of Closing is determined.
n All parties meet for Closing and ownership transfer.
Click here if you would like to talk with a professional at C. G. Reicher Associates about the possibility of selling your business.