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.