Business for Sale TemplateTemplate Business for Sale
Do you sell your company? Preparation of an effective sales protocol
No matter whether you sell your business alone or through a real estate agent, you need to be prepared to give a thorough review of your business in writing and know why it is a good prospective buyer. A few estate agents call this a sales record. Some call it a secret descriptive register or a bidder' reminder.
When your business is very small, straightforward and likely to be sold for less than $200,000, you can probably cut the sales protocol to a termsheet containing little more than a business statement, finance information and pricing and conditions overviews. When your company is large and its asset values, product and system are complex, your sales history is likely to run much longer to properly account for your offer and its higher cost.
Get your sales report ready. The sales log is the first exhaustive account of your business that your prospect will see. You need to find a good relationship between providing facts about your company and an inspirational account of its business opportunities. Presents facts about what your company is and does and what makes it an appealing buying option, without disclosing sensible information that you or your end users don't want non-buyers (especially competitors) to know.
They do not extend the truths or ignore shortcomings, as you must guarantee the correctness of all the information you provide before entering into a purchase agreement. Information on income and offer prices is displayed without publishing the full annual accounts. Contents if the membrane is longer than 4-5 pages. A summary of the company's corporate story.
Corporate structures (sole proprietorships, partnerships, corporations) and property. Brief descriptions of our product, personnel, market and company. Geographical situation, descriptions of buildings, rental information. Business strength and competitiveness chart. Schedule of business issues, along with how the problem could be resolved or an opportunity to grow. Describes the number of participants without a name bullet.
Describe the company's competitiveness and benefits. Describe the distinctive characteristics of products and services. Name of the resource. Stock information and stock listing. Cast summary. Describe the contest and the contest ranking. Describe the marketer' s strategy, marketer' s plans and unused marketplaces. Schedule of incremental opportunity and investments in timing, funding and human resource.
Assertions that describe business, market or transitional intentions that facilitate or address any prospective concerns. Sales content (example: Annual accounts as advised by brokers and accountants. Attachment lists with assets. The seller's declaration of release, drawn up with the help of a real estate agent or lawyer, containing a detailed evaluation of the business status, a listing of applicable licences and provisions and a description of all relevant legislation.
Information on markets where the business depends on locals. Photographs of headquarters, buildings and outfitting. Photocopies of promotional material. Summarize your sales history for use in early communication with potential purchasers. Company name, owner's name, contacts. Commercial terms, as in the sales log. A review of business strength, competitiveness and financials performances.
Offer prices and conditions as set out in the sales report. Produce a schedule for releasing your sales log and your abstract. However, if you are receiving requests from Business-for-Sale advertisers, do not submit your full sales log if it is long and contains a full detail of your business. Instead, reply with a copy of your sales note.
It gives you ample opportunity to evaluate the buyer's interests and finances before providing further detail. Distribute your sales log or abstract only with potential purchasers you consider eligible potential customers on the basis of the information they provide, and never previously have a non-disclosure contract in place that will be the next stage of the process.
Purchasers understands that they must subscribe to nondisclosure or non-disclosure covenants before they receive information about companies for sale, so be prepared and do not hesitate to ask. Next weekend we will be discussing how you can safeguard your company's privacy in your company's online advertising in the "Selling Your Small Business" issue. Publisher's note: This editorial is the 10th in a BizBuySell. com's guide toelling your small business.
It is a complete handbook that helps small business owner maximise their business results when the sales date comes.