The BizSales Business Sale System
A tried and tested system for selling your Business
The BizSales Business Sale System has been tested again and again has proved to be the best system for selling businesses. It has been used in 100s of sales and has been fine tuned to provide a simple yet effective method of selling SMEs.
The main parts of the system are;
1. Initial Seller Meeting: Initial seller telephone and physical meetings are conducted by the BizSales Broker to discuss the motivation for selling and the process of selling a business.
2. Listing Agreement & Data Collection: A Listing Agreement is filled out by the BizSales Broker and signed by the seller. Immediately after signing the Listing Agreement, the seller provides the broker the following:
a. A brief narrative on the company history, products, services, structure, markets
b. Copies of any marketing material;
c. Last 3 years P&L statements & balance sheets
d. Any more recent monthly management information, accounts or trend data
e. Asset Register including values of all equipment included or excluded in the sale;
f. Photocopy of property lease details;
g. Details of loans, HP, licenses, contracts, franchise agreement, patents/trademarks,;
h. Details of agreements relating to employees and benefits;
i. If relevant, any environmental licenses, certificates or reports etc;
3. Pre-Sales: BizSales Broker enters details on the business into on-line database.
4. Marketing: A marketing plan is developed and implemented.
5. Response Handling: Responses from potential buyers are logged and further information is supplied. Potential buyers may visit the business covertly and discuss the information with their advisors.
6. Negotiations: BizSales Broker sets up meeting between potential buyer and sellers to discuss details of business and if interested, the basic outline of a deal.
7. Letter of Intention: Potential Buyer discusses the outline of a deal with BizSales broker who facilitates the production of a letter of intention and formal offer to the seller. The offer must include a refundable reservation deposit (1% or £1k), held in trust by the BizSales. The BizSales broker will present all offers to the seller.
8. Consideration/Counter Offer: Seller will review the offer and decide whether to accept it by countersigning the letter of intention, or engage in counter offers.
9. Due Diligence: The buyer has a fixed period now to satisfy him regarding the details of the business as represented by seller, a process called Due Diligence;
10. Contract: Provided nothing irregular is found during Due Diligence, the sale and purchase can progress to the contact stage. The BizSales broker facilitates the production of a draft sale & purchase contract. In it all the details of the sale and hand over plan are included. A copy is supplied to both the buyer and seller and after discussion with advisors, they meet to hammer out all the details of the sale and draft a hand over check list. A final contract is agreed upon, signed and a completion date agreed. A non-refundable buying deposit (12.5% or £5k), is paid by the buyer and held in trust by BizSales.
11. Completion: In the weeks prior to completion, both the buyer and seller work through the hand over check lists until the completion date (or earlier by consent). On this day, the remaining items such as keys, alarm codes, supplier lists, recipes etc are handed over with the remaining balance of the monies.
12. Close: On or after the completion date, the BizSales broker presents invoice to seller and all net monies are reconciled.
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