Sellers > Preparing For The Sale

Knowing What to Expect

Enlisting the help of qualified outsiders who are impartial and specialize in the different areas of selling your business will save you both time and money.

EBB can guide you through process of selling businesses, which has essentially, three phases.

Step 1: Getting Ready
Before you put your business on the market for sale, make sure it is salable by identifying and solving any issues. Conduct a thorough examination of your company’s finances and liabilities, as well as the market conditions. Consider hiring an independent third party to assess the value. They can re-cast the financial statements and show true profitability and value to determine a fair and accurate price.

Step 2: Finding Buyers
Locating and then qualifying buyers is difficult. Confidentiality is an issue and screening is a time-consuming process. First you will need to identify their objectives. Are they a first time-buyers, experienced business owners, investors or corporate buyers? Then you will need to look into their background, check their references and assess their financial position.

Step 3: Negotiating and Closing the Deal
Hundreds of points will be covered during negotiations such as terms of payment, employee contracts, royalties, non-compete agreements and warrantees. Calling in the experts – lawyers, accountants and investment bankers - early may protect you and ensure you end up with a deal that is fair for all parties involved.