In an effort to assist with a potential interest in selling one or more of their existing businesses, we have developed the following information. The goal of the program is to assist the business owner in achieving a timely sale of the unit(s) at an acceptable price and terms.
The position of the Broker in this process needs to be clearly understood. We do not represent the interests of either the buyer or the seller nor will we act as agent or salesperson in any such transaction. We will, at our option, assist both the seller and the buyer to make the transaction as smooth as possible.
Broker conducts a regular, ongoing effort to solicit and process interested prospective buyers. This portion of our business involves considerable expense to us in terms of advertising and solicitation costs.
There are a few factors that must be addressed in order for the process to result in a successful outcome. These factors, which will be discussed in detail, include:
Preparing sales related information that will be provided to buyers;
Pricing or valuing the business for sale;
Marketing the business to attract potential buyers;
Managing the negotiation of the sale terms; and
Dealing with any financing needs of the buyer in the transaction.
Failure to adequately address any of these factors during the process of selling the business may result in delays in the sales process, a lower price being realized or even an inability to complete a sale. It will be the obligation of you and your company to assist with communication and to provide information in a timely manner.
Here is a basic summary outline of the process for communication with prospects:
Broker will receive calls from potential prospects. Only very basic information is discussed in this initial conversation:
Industry: ie, Automotive, Business Services, Home Improvement, etc.
If additional information is requested, an NDA is discussed, delivered, signed and returned prior to any further discussion or delivery of material.
Summary financial information is provided to prospect for review as well as a more in-depth discussion about the business. Name, Location, Physical Plant, etc. Maintenance of confidentiality and no contact with the physical location is addressed/mandated.
If the prospect continues interest, additional information is discussed and provided.
Phone or personal introduction to Owner
Negotiation of price and terms are discussed
Letter of Intent is signed
Due Diligence process begins
Asset Purchase Agreement is prepared and Signed
Business Visit and additional Due Diligence are scheduled for an appropriate time
Candidates are introduced to Franchisor – if Applicable – and franchise approval process is completed