Anatomy of a Business Sale from the

Seller's Perspective

What You the Seller Should Expect

1. Seller interviews and chooses a competent Business Broker to represent firm.
2. Only Brokers who can maintain confidentiality and have a full understanding of fiduciary relationships should be considered.
3. Seller supplies the Broker with the following tools:
A. Three to five (or more) of Business financial data and federal tax returns.
B. Current year to date financial statements.
C. List of furniture, fixtures and capital equipment used in the Business with a "value in place" market value approximation for each item. (See Broker for help)
D. List of vehicles and their fair market value.
E. List of any leasehold improvements.
F. List of any leased equipment with transferable value. (See Broker for help)
G. The value of leasehold improvements if any.
H. List of employees, their titles and compensation.
I. List of family members or silent partners.
J. Copy of Business real property lease, or
K. Copy of most recent MAI appraisal of the offered for sale together with the Business.
L. Copy of any other documents associated with real property, surveys, plot plans, deeds, tax bills, etc.
M. Copy of any major contracts (customer or supplier) that affect the Business.
N. Copy of any special license or franchise agreements affecting the Business.
O. Relative values of inventory of raw materials and work in progress.
P. Information that will contribute to the value of your Business or make your Business have a particular advantage over the competition.
4. Seller completes a one-on-one interview questionnaire with representatives of the Broker’s firm.
5. Broker listens in-depth to Seller’s explanation of Seller’s goals for the sale.
6. Seller identifies for the Broker any "in-house" prospect(s) for the Business. Broker will give an up front exclusionary period for the Seller to effect his own sale if he desires.
7. The Broker returns to Seller with a Business valuation supporting the fair market value of the Business.
8. Seller and Broker reach agreement on the listed price of the Business and real property.
9. Seller’s engagement agreement with the Broker is for an exclusive right to sell period of a minimum of twelve months.
10. Seller’s engagement agreement specifies the success fee charged by the Broker for his services and discloses that the Broker’s success fee is paid at the time of closing of the transaction between the Buyer and the Seller.
11. Broker and Seller discuss particular marketing strategies that may apply to this individual Business.
12. Broker prepares a lender’s package on the Business and submits the document to various SBA lender contacts for evaluation.
13. Broker obtains pre-qualification letters on the Business financing for potential Buyers.
14. Broker’s staff prepares an executive summary on the Business and other visual aides to help peak interest in the Business.
15. Broker will network the listing with FBBA, BBF and IBBA Brokers.
16. Broker commences the marketing plan.
17. Broker screens all inquiries about the Business.
18. Broker pre-qualifies prospects for the Business.
19. Broker obtains a preliminary Buyer match for this Business.
20. Broker makes introduction of Buyer and Seller.
21. Broker assists Buyer to make purchase offer.
22. Broker represents the Seller in negotiation of the sale terms and conditions.
23. Broker consults with Seller to determine the best exit strategy for the Seller.
24. Broker consults with the Seller’s tax and legal professionals.
25. When contract in accepted by all parties the Broker accepts additional duties.
26. Broker coordinates the review of information requested for "due diligence" purposes by the Buyer’s financial experts.
27. Broker supports the Seller during the crucial "due diligence" period prior to closing.
28. Broker coordinates the financing of the Buyer with SBA Lenders.
29. Broker coordinates the many closing requirements for the Buyer’s loan and the closing of the transaction.
30. Broker receives its success fee at closing of the transaction.
31. Seller and Seller’s family are satisfied.
32.

Buyer is satisfied. $$$$$$$$$$$$$$
 

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