Process for Selling a Business

C. G. Reicher Associates provides a methodical, step-wise approach to transferring business ownership. While every transfer process is unique, here is an overview:

 

Preparation

  • Understanding owner’s objectives and the company’s position in the marketplace.
  • Analyze company data to determine price and terms (valuation) which are consistent with the marketplace and the owner’s objectives.

Prepare Marketing Package

  • Organize the documents needed for marketing including year-to-date financials, 3 to 5 previous years of financial and tax returns, asset and equipment list, a summary of company information.
  • Research and analyze the industry.
  • Define and identify potential buyers or buyer criteria and profile.
  • Prepare Confidential Memorandum, Marketing “Blind” Profile.
  • Execute Listing Agreement and parallel documents.

    Marketing, Buyer Interviews 

  • Contact potential buyers via web postings, letters, phone calls.

  • Secure buyer’s profile, confidentiality agreement and financial statement.

  • Pre-qualify buyers based on financial ability and fit.

  • Educate buyer about deal requirements, company information.

  • Arrange meeting/s with owner and potential buyer.

  • Buyer begins speaking with lenders, securing financing.

    Negotiations and Sale

  • Buyer presents the Letter of Intent to seller.

  • Letter of Intent is negotiated and signed by both parties.

  • Terms of Letter of Intent are transferred into a Purchase Agreement.

  • Any remaining issues are negotiated, resolved.

  • All documents within Definitive Agreement are finalized and reviewed.

  • Buyer completes Due Diligence.

  • Buyer’s financing is completed.

  • Date, time, location of Closing is determined.

  • All parties meet for Closing and ownership transfer.

     

Contact Us

(320) 492-1005

chris@cgreicher.com