Novare Business Advisors provides a methodical, step-wise approach to transferring business ownership.
While every transfer process is unique, here is an overview:
Preparation
Understanding owner’s objectives and the company’s position in the marketplace.
Analyze company data to determine price and terms (valuation) which are consistent with the marketplace and the owner’s objectives.
Prepare Marketing Package
Organize the documents needed for marketing including year-to-date financials, 3 to 5 previous years of financials and tax returns, asset and equipment list, summary of company information.
Research and analyze the industry.
Define and identify potential buyers or buyer criteria and profile.
Prepare Confidential Memorandum, Marketing "Blind" Profile.
Execute Listing Agreement and parallel documents.
Marketing, Buyer Interviews
Contact potential buyers via web postings, letters, phone calls.
Secure buyer’s profile, confidentiality agreement and financial statement.
Pre-qualify buyers based on financial ability and fit.
Educate buyer about deal requirements, company information.
Arrange meeting/s with owner and potential buyer.
Buyer begins speaking with lenders, securing financing.
Negotiations and Sale
Buyer presents the Letter of Intent to seller.
Letter of Intent is negotiated and signed by both parties.
Terms of Letter of Intent are transferred into a Purchase Agreement.
Any remaining issues are negotiated, resolved.
All documents within Definitive Agreement are finalized and reviewed.
Buyer completes Due Diligence.
Buyer's financing is completed.
Date, time, location of Closing is determined.
