THE PROCESS OF SELLING A BUSINESS WITH ABA
Selling a company is an experience that some entrepreneurs will only have once in their lifetime. It is an event for which most have little training and no direct experience. Yet selling your business is possibly the single most important issue for your financial future. It is beneficial to you that you have a general knowledge of the entire process of selling a business before making decisions about how to precede
The following is a step-by-step summary of the typical business sales process:
1. The process starts with a preliminary, no-obligation meeting that is scheduled at the seller’s convenience. The broker will ask many questions about the business and operations. This is time where information is exchanged, so the seller and broker can become acquainted with each other and their respective businesses.
2. After meeting, the seller will need to provide the broker with profit and loss statements, balance sheets, and tax returns of the business covering the last three years. The broker then will determine a most probable selling price based on the Fair Market Value. We may recommend that clients obtain an independent valuation of the business being offered for sale. Access will gladly recommend one or more experienced, qualified valuation firms for your consideration.
3. Once the broker has come up with the Fair Market Value of the business the seller decides whether or not they want to move forward and retain Access to represent the seller. If so, a Listing Agreement is filled out and signed by the seller. At that time, the seller provides the broker with the following:
- Complete lists of all equipment and other assets to be included or excluded in the sale.
- The most recent interim profit and loss statement, balance sheet, and sales tax returns.
- Real and personal property leases.
- Copies of all patents, licensees, loan documents, contracts or agreements.
- All agreements relating to employee benefits.
- Any environmental reports.
- Copies of all other documents needed to present a fair and accurate description of the business to prospective buyers.
- During the representation period, the seller must update each document when any material changes have occurred.