How to Sell a Business - The 4 Guided Steps
ExitAdviser has simplified the overall process of selling a small business down to a four stage undertaking as shown below.
#1: Checking the Status
Prior to deciding about the sale, you will run a status check to determine how "sellable" your business is, so you can set the course of actions accordingly.
- Are you ready to sell?
- Is the timing right?
- Is your company well-prepared?
#2: Preparing for Sale
Here's where the key online tools on ExitAdviser play an important role.
- The Business Valuation Tool uses the tried-and-tested Discounted Cash Flow method to come up with an objective, earnings-based approach to business valuation, helping you to defend your Asking Price with prospective buyers.
- In parallel, the Sales Memorandum Tool brings attention to the key information that serious buyers will want to know.
- Next, with the Go-to-Market tool's Listing Manager, you will prepare your sale listing to hit the market.
#3: Going to Market
Almost every purchase today begins with a search on the internet, and the shoppers looking to buy a business are any different.
Getting your offer direct to market
#4: Closing the Deal
Getting your paperwork ready
ExitAdviser provides you a full collection of legal forms and templates to download.
You'll require a commitment in principle from the buyer, typically a Letter of Intent. Following due diligence and detailed negotiations, obtaining signatures on a Business Sale Agreement is the target outcome for both parties.
At the closing stage, it's the detail that counts. It is advisable to use the services of an attorney.
Total time: up to 12 months.
Supplies: a computer, tablet, or smartphone with internet connection.