Listing your business
The first step is to meet with us and sign a listing agreement. Along with the listing agreement the we will take down some of the basic information about the business in order to create the advertising copy to list the business for sale. This basic information will include:
- Gross sales
- Net Income
- Brief business description
- Value of Inventory
- Value of Furniture Fixtures and Equipment
- Number of years in business
- Lease (if the building is not included in the sale
- Building size
- Parking
Financial information on the business
Having good financial informatin prepared for the buyers in of premium importance. Most savvy buyers make their decisions based on real world figures that they can see and verify. So in order to properly prepare our presentation
information to prospective buyers, we need as complete as possible financial data on your business. Any information you furnish us is confidential and will be disclosed only to those buyers we feel are qualified to purchase your business. We realize that you might not have all the information we request, but please do your best to provide as much as possible. We ask that you provide the following:
- Profit and loss statements for the last 3 years
- Federal income tax returns for the last 3 years
- A balance sheet on the business for the last 3 years
- Copy of the lease and related documents, such as any assignments of the lease
- A current list of Furniture, Fixtures, & Equipment
- A copy of the Franchise Agreement (if this is a franchise).
- Documentation on any loans against the business
- Name, address and telephone number of outside professions
- A current, or most recent schedule of inventory
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Showing your business
After we have interviewed and qualifed buyers we will then make arrangements for them to see the business. During these initial meetings the buyer will look over the business location, condition of equipment and the quantity of inventory. We ask that you do your best to clean the premises, get rid of any equipment and junk that is no longer useful to the business. The buyer needs to see the business in the best condition possible.
Making an offer & negotiations
After we find an interested buyer that is ready to perform, we will right up an offer with buyer. We strongly encourage you to carefully examine each offer we present. There are occasions when the first offer is the only offer. However, when there is strong income from the business, it has been our experience that multiple offers are common. After the negotiating process if you decide to accept the offer then the contracts are signed by both parties and we open escrow.
Opening escrow and due diligence
The buyers down payment is deposited in escrow and the due diligence process begins. The purchase contact will stipulate the time period of the due diligence examination. During this period the buyer will have time to closely examine any and all financial information on the business, the equipment, facilities and any thing else related to the business that they desire. The due diligence period usually does not exceed two weeks. However, with larger business aquisition this time period and be longer. Once the buyer is satisfied, then we move forward with the other details for the transfer of the business, like assignment of the lease, or negotiating a new lease. There are many steps in the escrow process. Click here is you would like more information on the entire process.
Close of escrow
At the close of escrow the buyer and selling will go the the title company to sign the closing documents. They do not both have to be present for at the same time for the closing. After the escrow is officially closed the seller will turn over the keys to the buyer. However, this is often not the end of their interaction. The seller is often contractually obligated to train the buyer in the day to day operations for certain agreed upon duration of time; usually two weeks to a month. |
