The Selling Process:
It is a major decision to sell a business you have worked so hard to build. Making this decision to sell your business is a culmination of all your hard work. It allows retirement or enables you to move on to your next venture. You have spent time, money and energy in your business to build it to this point. Working with Aviles Business Brokerage will allow you to get the maximum value of your effort and help find the right buyer for your company. Please contact us with any questions regarding the sale or purchase of a business.
Finding the right buyer is important in ensuring the sale and maximize the profits for you business. After evaluation, Aviles Business Brokers will strategize and discuss with you several methods of marketing and selling your business.
Preparing to sell
Owners sell their business for many reasons: from retirement, partner disputes, personal relocation, family concerns, the desire for change, illness, or to enter into another business venture.
Below is a list of key specific items that we recommend you have to ensure a successful transaction.
• Have provable books and records. Buyers want proof of sales and profit information the business has attained in the past.
• Have a reasonable expectation of price and terms. Educated buyers only consider competitively priced businesses.
• Have a list of assets including furniture, fixtures and equipment inventory that can be referenced during inspection.
• Have an attractive lease. Buyers like to know the terms of the lease and the assignment clause.
• Have the best possible appearance including having the business premises neat, clean and in good repair.
• Have a professional evaluation of the business. This creates a document that proves value to the buyer and shows the business to be competitively priced.
• Have a covenant not to compete. Preparing the terms of non-competition within an appropriate distance and for a reasonable period of time.
• Have a specific reason for sale. Buyers want to understand the reason you are selling and be comfortable that there is not undisclosed information that could negatively affect their investment.
• Time is of the essence. Be prepared to move forward when a qualified buyer shows interest in the business.
Selling Your Business 101
If you decide that selling your business is the right exit strategy for you, be sure that you cover all your bases. In order to sell your business officially, you will need to prepare a sales agreement. This is the key document in buying the business assets or stock of a corporation. It is important to make sure the agreement is accurate and contains all the terms of the purchase. It would be a good idea to have an attorney review this document. It is in this agreement that you should define everything that you intend to purchase of the business, assets, customer lists, intellectual property and goodwill.
The following is a checklist of items that should be addressed in the agreement:
- Names of seller, buyer, and business
- Background information
- Assets being sold
- Purchase price and Allocation of Assets
- Covenant Not to Compete
- Any adjustments to be made
- The Terms of the Agreement and payment terms
- List of inventory included in the sale
- Any representation and warranties of the seller and buyer
- Determination as to the access to any business information
- Determination as to the running of the business prior to closing
- Fees, including brokers fees
- Date of closing.You are important to us and we welcome the opportunity to help you sell your business. Please contact Gil at (843) 697-5535 or you can contact us via email.