Business Brokers act as intermediaries between buyers and sellers in the process of selling or buying a business. Most Business owners who have sold a business on their own will tell you it is a very long, tedious and stressful process. It will distract you from day to day operations of your business, when your focus should be on increasing or maintaining the value of your business. A Business Broker is there to assist and guide you through the process of selling your business.
- a good business broker will bring you qualified buyers
- a good business broker will allow you to focus on your business
- a good business broker will maintain confidentiality while aggressively marketing your business
- a good business broker will be the buffer between the seller and the buyer
- a good business broker will assist you in getting the maximum value for your business.
Selling your business can be one of the most important decisions you will make. You have worked hard to build up the business, but now it is time to move on. Our approach at Score Business Brokers is to assist you in making the sale process as easy as possible.
- First we have an introductory meeting to get to know each other, discuss your business and your goals
- Seller completes a questionnaire on the scope of the business to start the process
- Broker will review all documentations provided by the seller
- Broker and seller will come up with a fair market value for the business,
based on re-calculated cash flows, and current industry multipliers
- The lease will be reviewed to ensure it is assignable
If the seller agrees to list the business with Score Business Brokers then:
* A Listing contract to sell the business is signed
* Seller will provide documentation that they are in a position to sell the business
- Broker will list the business
- Broker will market and advertise the business while keeping confidential the business
name and address is withheld until a qualified buyer has signed an NDA (non disclosure or confidentiality agreement)
- Buyer will perform their due diligence, and when satisfied either provide a letter of intent or an offer to purchase
- The lawyers for both sides will complete a purchase and sale agreement, and follow through until all conditions have been removed and the funds have been transferred.
Congratulations your business has been sold.
Being organised is critical in selling a business; there are many documents that can be prepared well in advance of a sale. These include but are not limited to:
- past 3 years of financial statements
- asset and equipment list
- copies of lease (confirm that your lease is assignable, negotiate options to extend the lease)
- list of vendors and key contacts
- customer list
- checklist of things to do after a buy/sell agreement is accepted
The due diligence process by the potential buyer will undoubtedly bring requests for more information, but by having the above documents in advance will help to speed up the process and show the buyer you are organised and ready to sell.