Steps to Selling Your Business
Selling a business follows a definite path to success. Here’s a 12-step roadmap of the key elements of a successful sale—
Selling a business is serious business for all involved. You must have the mental commitment to offer a fair price and to accept reasonable terms consistent with the marketplace.
2. Selecting Your Professional Team
In addition to selecting a qualified/certified business broker such as Alpine Business Brokers, we strongly advise you to seek competent legal counsel as well as tax and accounting advice. If do not have your own advisors, we can provide you with a list of several whom other sellers have successfully used in the past.
3. Determining Value—Selecting the Sales Price
Alpine Business Brokers’ professionals will prepare a broker’s opinion of value and will explain to you the elements that come into play in valuing a Utah business for sale. They will help you understand the possible price you might receive for your business, and ultimately you will set a sales price that assures a reasonable chance of selling your business for sale in Utah.
4. Transition Plan
Understanding the possible structure of a deal is crucial. The terms are affected by how much cash is required, minimization of the effect of taxes, continuity of key employees, and many other considerations. We will help you understand what to expect.
5. Documentation and Marketing Strategy
You must provide financial statements and other information about your business for sale in Utah. Alpine Business Brokers will prepare a confidential profile and comprehensive marketing package for qualified buyers. Preparation of this package includes recasting your financial statements to show the real cash flows after removing the owner’s discretionary items. Then we extensively advertise your business locally and nationally, in print as well as on the World-Wide Web. Advertising is done in a generic, confidential manner that does not reveal the name or location of your business. No details of your business for sale in Utah are released without your approval.
6. Screening of Buyers and Confidential Introductions
Alpine Business Brokers screens all buyer inquiries and weeds out the tire kickers and time wasters. This allows you to stay focused on your business. Qualified buyers will then sign a confidentiality agreement before being given any specific information about your business for sale in Utah. More information is given to them as they narrow their search and show greater interest. Finally, buyers complete a detailed buyer profile that ensures they have the financial ability to complete the transaction, before they are given the complete marketing package on your business.
7. Showing the Business and Meeting the Buyer
We will arrange for the buyer to visit you and your Utah business for sale so that we can walk them through the facilities to view the operation firsthand. This visit will be done at a convenient time for you. You should never meet the buyer alone. We’re there to act as your intermediary and are experienced at positioning your business and at handling difficult questions. Many a deal has died by an overeager seller meeting alone with an aggressive buyer. We will review with you a list of dos and don’ts before any meeting takes place.
8. Receiving the Offer to Purchase
We work with the buyer to obtain a written offer. We represent your interests and explain your position. Most offers will have some contingencies. We will work to see that they have a time limit and are reasonable. When the offer is complete, we will present it to you and explain the reasoning of the buyer. We help you understand the buyer’s background and abilities so you can make good decision.
9. Negotiation and Acceptance
We continue to work with you and your advisors to reach terms that are acceptable to both parties. As your business broker, we can add great value during this negotiating process. We will prove beneficial by helping to select alternatives and working to complete the deal. Once the offer is accepted, then it becomes a purchase and sale agreement, with contingencies.
10. Due Diligence and Contingency Removal
Now begins the in-depth inspection of your accounts and records. Agreement for the lease to be assigned, public-records searches, and verification of assumable loans and trade agreements occur. When all the contingencies have been removed, the purchase and sale agreement is binding. It is important to work quickly to provide the buyer with everything needed to remove the contingencies. Time can work against you, and a buyer can go cold if too much time passes.
11. Open Escrow
The purchase and sale agreement and all other documents relating to the sale are turned over to a neutral third-party escrow attorney. The attorney prepares all the closing papers; performs lien searches; and prorates rents, deposits, taxes, and other items to the closing date. The attorney also makes sure all secured creditors are satisfied and ensures that all other security agreements and related documents are completed. Final arrangements for the payoff or assumption of all notes and leases are made. Your advisors and the buyer’s advisors review all these arrangements until all parties are satisfied. The costs for the escrow attorney are minimal and are shared equally between the buyer and seller.
12. Inventory and Closing
Final inventory is taken. Old notes are paid off or assumed; and new notes, agreements, and bills of sale are signed. Then it’s celebration time!