10 Steps to Selling Your Business
1. THE CONSULTATION.
At the initial meeting, a CII Business Advisor will review with you the procedures for the sale of your company. You will be advised of all pertinent data necessary for the sale.
2. GETTING THE FACTS.
Information concerning company history, financial status, and industry position will be assembled for the evaluation of your business. Your CII Business Advisor will have you answer a Seller questionnaire to aid in gathering information.
3. THE VALUATION.
The size and complexity of the business will determine the degree of analysis necessary to complete the valuation. All CII Business Advisors are trained in several business valuation methodologies.
4. THE LISTING AGREEMENT.
With your complete understanding of the procedures involved, you and your CII Business Advisor will execute a Listing Agreement. This document allows CII to proceed with the marketing and sale of your business.
5. THE BUSINESS PROFILE.
To properly market your business, your CII Business Advisor will prepare your Business Profile or fact sheet. This is an overview, which will assist Buyers in understanding and evaluating your business for their investment. Included in this presentation is the history of your company, description of its facilities, financial information, service and product information, your reason for selling, the firm’s overall strengths. This information is treated with strict confidentiality at all times.
6. THE MARKETING PLAN.
Your CII Business Advisor will also develop and execute a customized marketing plan. After determining the appropriate market, your business will be selectively and discreetly advertised in specific publications or presented through other media such as a list of business opportunities mailed nationwide. Your CII Business Advisor will keep in frequent contact with you, advising you of all responses regarding ad calls, interviews, tours, and advertising.
7. QUALIFYING BUYERS.
Your CII Business Advisor will carefully screen all prospective Buyers before they have access to any information about your company. A Buyer’s background, qualifications, experience, financial resources, and references will be examined. The Buyer will also be required to sign a Confidentiality Agreement prior to receiving any confidential information.
8. THE PURCHASE AGREEMENT.
Your CII Business Advisor will work with you to provide the Buyer with all available information that he or she may need to make an offer to purchase your business. Your CII Professional will offer to provide guidance to the Buyer throughout the process. CII can provide a standard Asset Purchase Agreement necessary to complete the transaction.
9. NEGOTIATING THE TRANSACTION.
Your CII Business Advisor knows that price is only one factor in negotiating a sale. Through training and experience, he is fully qualified to lead these negotiations, offering recommendations in such areas as creative financing, non-compete agreements, employment contracts, etc.
10. CLOSING.
Your CII Business Advisor is experienced in closing transactions. He or she will work both with you and the Buyer’s team of professionals to insure that everything is accomplished for the transition to new ownership.