Minnesota Businesses For Sale: Solutions, Strategies And Challenges In Tough Economic Times
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[Minnesota Business For Sale 12 Step Video Training]
This guide is written to assist owners of small to medium size businesses in the process of selling their businesses. Our company is members of the world's largest network of business brokers and M&A professionals. As one of our valued sell-side clients, we want to welcome you into our network. While we work together as partners in the selling process, it is important that you be as well prepared as possible for dealing, and ultimately, negotiating with potential buyers.
This helpful guide will resolve many questions and offer a number of practical forms and valuable tips. If you would enjoy receiving the Video Training and the entire 62 page e book with selling documents and forms, please contact us through our link contained in the Resource Box below.
Moving forward together, maintain the following points:
* Marketing and Selling a business is a process, not an event.
* The complete process is described in this comprehensive guide.
* Your family has worked long and hard at building a profitable business; now you must work as hard at selling it.
* To achieve the highest fair market value, be certain to preserve confidentiality and the prosperity of the business.
* Be prepared with proper documentation.
* Understand buyer motivation and issues as well as your own so that rational judgment instead of emotion can lead to a mutually beneficial transaction.
The timing of the sale of your business, from the seller commitment point and resulting completion of the transaction, can take months and sometimes years.
Here is a brief summary of the entire process:
1. Naturally, the first step is to make a strong commitment to sell the business and to the process in effectively bringing about the sale.
2. The second step is in the careful preparation of all selling documents, which may include a business appraisal and other offering documents.
3. Then we commence the advertising and marketing to locate qualified buyers.
4. Next, you are notified of a qualified buyer, we will have already made initial contact and screening of the prospective buyer (see page 11). (Price and terms are not be discussed here.)
5. Broker commence negotiations including deal structuring. (we discuss pricing including terms.)
6. Finally, after all concerns have been addressed and an agreement has been reached on price and terms, the candidate acquirer will offer a Letter of Intent / Purchase Offer and an earnest money deposit.
7. The buyer will finalize his or her due diligence before the closing transaction and you complete yours.
8. When everyone is in agreement that a sale is desirable, probably with the assistance of your attorney and CPA, we can now prepare a Definitive Purchase Agreement and all closing aspects of the sale.
A new phase of life is now open to you upon complete of the sale of your business. No matter if you are selling to enter a retirement, dedicate your time to other business opportunities, or to relax and enjoy life, correct implementation of the selling process is key. Broker closely supervises each step of the sales process to successfully complete the deal.
Completing the sale of your business is firstly one of the more important or largest financial transactions you may complete with in your life time. It is regularly the least understood - and prepared for - in the life cycle of a business. The sale of your business is the final chapter in 3 general stages of business:
1. The business start up (purchasing an ongoing business or starting your own);
2. Maintenance of the business (operations of the business, nurturing, building, improving, on going relationships, and the continuation of a viable, profitable business);
3. Exiting (selling the business to a buyer who will start the three stages all over again).
It is the life cycle of business: birth, growth & maintenance, to include finally exiting that business entity.
There are numerous things to think about when selling a business and many challenges to successfully completing that end. One of the more difficult to understand fully is someone other than yourself, is possibly interested in acquiring your business. The buyer may want to know about things that may not be important to you or being nosey or the buyer may ask or say things that may challenge your truthfulness. Keep in mind; you are strangers to each other and trust must first be established. As the old saying goes, "buyer beware". Therefore, buyers will want to proceed with caution - and also consider other businesses- before making an offer! The purpose of our sellers guide is to offer you a an overview of what to expect, what to prepare, and how to deal with issues and concerns that are likely to come up in the process of your selling your business. By being informed it is much more likely the business will close successfully - at a fair price, sooner verses later, and with less stress.
This document is for your increased knowledge of the selling process and the variables associated with that process. It is not a recommendation to sell your company. It is merely a tool to assist you in the event that such a decision is made. The decision to sell, and the determination of the selling price, rests solely with the owner(s) of the company and advisors.
You are hereby advised to select your own asking price for your business. Depending on the circumstances involved and the ability to attract the right buyer to your business, the actual price that the business ultimately brings may vary from the asking price you initially set. Factors to consider in arriving at your asking price would normally include, among others:
* Cash flow the business generates
* Return On the Investment
* The local and national economy
* Management style and influence
* Age and life cycle of the industry
* Market value of all assets (including liquidation value)
* Market Interest rates
* Competition
* Location of the business
* Employee base
* Personal needs & circumstances relative to the parties
The Transaction Structure examples presented as Appendix E (visit our website) are for the purposes of illustration only. Legal and tax implications in the examples have not been considered. The correct terms and structure for the sale of your business should be carefully determined thorough discussions with your professional advisors, to also include your attorney and accountant. The sample documents presented in the appendix section are intended for illustration purposes only.
Again, you should carefully examine any documents involved in the sale of your business and may choose to have your professional advisors and or attorney review the actual documents for the sale of your business.
Any figures contained in this guide are for illustration purposes only and do not represent any factual or audited numbers. Accordingly, there have been no representations, expressed or implied, as to the accuracy or relevance of the financial or other information contained herein.
Please visit our website within the Resource Box to obtain the complete Appendixes and Selling Forms included in the Sellers Guide.
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