Steps In Selling A Business
Here are some of the essential steps normally seen in selling a business. Because each deal is different, there may be other steps as well:
Assemble your team–your attorney, CPA, and someone to help find a buyer, such as a business broker or investment banker, depending on the business size.
Determine the best sale, asset or equity, and whether you prefer a deferred or simultaneous closing (more on the differences in other articles).
Get your business ready for sale (see the article Getting Your Business Ready for Sale).
After locating a buyer, the usual process involves a nondisclosure agreement with the buyer, which may include a non-binding letter of intent, which, notwithstanding the name, usually includes several binding provisions (see the article Letters of Intent).
Next is negotiating due diligence and the purchase and sale agreement (this process is covered in other articles).
The purchase and sale agreement and the closing (deferred or simultaneous) will govern the rest of the process, hopefully culminating with closing the sale.
This informational memorandum is not intended to be an exhaustive treatment of its subject matter but an overview of some pertinent elements of the subject discussed. It is not legal advice or a legal opinion and should not be relied on in making legal or business decisions.
