Preparation For Sale

Your first step with our business for sale by owner plan will be to complete our new client questionnaire.  Then you will submit your financial statements/tax returns. Your information is fully confidential at all times  One of our client managers will be available to assist you if you get stuck.  We will review your provided information, ask you more questions, and ‘recast’ the financials.

Business Valuation Options

Next you’ll want to understand business value.   Included in your fee, we will gather and ‘recast’ your financials to determine your “total adjusted net profit to one full-time working owner” (also called Sellers Discretionary Earnings).  We will research sold market comparables and industry rules of thumb to determine an asking price.  We also offer Detailed and Comprehensive business valuations that are USPAP compliant and signed and certified by our ASA/CVA certified appraisers.  All reports will let you know ahead of time the general parameters of what your company could be sold for.  (Let us know if you’d like to see Business Valuation samples.)

Business Profile

Once you are comfortable with the established value range and have decided on a ‘go to market’ asking price, you’ll complete a short seller questionnaire, email or upload photos and videos of your business location (if appropriate), region, or anything else that will help a buyer understand your business.

Included in your fee, our administrative staff will schedule a time to do a Zoom interview where we dialog with you as if we were buyers, what would we want to know about your business?  This video will be merged with other photos and videos you’ve provided and gets edited to about 10-15 minutes long.  The video interview and tour basically replaces the first phone call or onsite meeting with the buyer.  Having this video will allow qualified buyers to “preview your business” without having to schedule onsite showings. You’ll save hours of meetings, and further ensuring confidentiality. This video interview Q&A is not mandatory, but it becomes a very helpful tool in the sale process.

We will then professionally produce a customized Business Profile incorporating the content from your questionnaire. This will also include the photos/videos you uploaded, and our video interview. (Let us know if you’d like to see a sample Business Profile.)

Buyer Marketing

Company Sellers will post your company for sale (*confidentially) on 4 or more of the most popular businesses for sale search websites.  This would cost you over $600 to directly pay for ads on these websites.  We also post your business on our CompanySellers.com business search portal.  Most sellers prefer that the ads are generic. We sell “the sizzle” but not “the steak”. Ads are created in a way where the reader will get excited enough to ask for more info, but cannot know exactly what business it is without inquiring further.

Company Sellers will also email your business listing as a ‘buyer blast’ to those qualified buyers already in our database seeking businesses like yours, based on location, industry, size, etc.

Buyer Management

As each buyer responds to our ads for your business, the buyer must first complete a Buyer Registration providing that they have the skills and financial resources required to purchase your business. They must agree to a non-disclosure statement.  This form will be completed and submitted directly to Company Sellers from our website. We will review their buyer profile to determine their financial abilities and skill set.

Company Sellers will email your Business Profile to each of the buyers, and CC you.

BUSINESS FOR SALE BY OWNER TOOLKIT: THIS IS WHERE YOU TAKE OVER.  YOU WILL WORK WITH EACH BUYER DIRECTLY UNTIL THE BUSINESS IS SOLD.  

Make contact with each new buyer a day or two later to answer any questions, schedule a showing, provide additional information, and more.  You should continue to reach out to each buyer until they either agree to submitting an offer, or they go away.

Offer / Counter Offer / Due Diligence

Using our provided folder of sample forms and agreements, all the while leaning heavily on your other primary business advisors (accountants, attorneys, financial planners, etc.), you will work with the buyer to negotiate the letter of intent, counter-offer, and asset/stock purchase agreement. You’ll use our provided Due Diligence Checklist to ensure that every step gets its proper attention, including Lending, and Closing.

Business Loan Approval

Your buyer will almost always require some form of financing. This could be a conventional loan, asset loan, SBA guaranteed loan, factoring, home-equity loan, or seller financing. The most common business loan by far is the 7(a) business acquisition loan through the Small Business Administration (SBA).  The SBA lending process is long and difficult.  Make sure that the buyer is working with one or more lenders (preferably 2-3) to get loan approval.  This will take 60-90 days or more.  Buyers should be working with lenders simultaneous to all other aspects of due diligence.

Closing

The closing process is different depending on your state.  Your forms folder will include sample due diligence and closing documents to use in preparation for the Closing.  However, it is imperative that you work with a reputable business attorney and accountant to review (or create) all closing documents.  Depending on your state, the Closing will be facilitated by either a title & escrow company, the buyer or sellers’ attorney, or a third-party attorney that represents the ‘transaction’.

NOTE: THERE ARE A LOT OF MOVING PARTS TO THE BUSINESS ACQUISITION PROCESS, WHICH IS WHY BROKERS CHARGE THE FEES THEY DO. IF AT ANY TIME YOU DECIDE THAT YOU NO LONGER WANT TO SELL IT YOURSELF, LET US KNOW, AGREE TO PAY A SUCCESS FEE (COMMISSION AT CLOSING), AND WE’LL MANAGE EVERY STEP OF THE BUSINESS SELLING PROCESS FOR YOU.