What Do I Need to Do as the Seller?

 What You Can Expect As the Seller

PHASE ONE

PREPARATION

RMS and Company works with the seller to collect all necessary information for preparation to sell. This includes three years’ worth of financial statements and tax returns. We will recast this information to reflect the true economic performance of the business. Recasting
involves adding back discretionary expenses to the cash flow of the business.

MARKETING PACKAGE AND VALUATION

We prepare a professional valuation to determine a business’s fair market value. We review the results with the seller and agree on the structure of sale. We then create a comprehensive offering portfolio on your business and design a marketing plan.

MARKETING

We use several direct marketing avenues to ensure the proper, yet confidential exposure for the seller:

  • Our national network of over 450 affiliates
  • Local and national newspaper classifieds
  • Placement of business on several strategic Internet sites
  • Direct mail to target prospects
  • Define buyer criteria and profile.
  • Conduct target marketing campaign through a direct mail program.
  • Identify and classify potential buyers.

PHASE TWO

SCREENING BUYERS

We screen potential buyers and create a secure buyer profile along with a confidential agreement and financial statement.

BUYER MEETINGS

If a buyer is qualified and interested, we provide him or her with the offering summary and educate them about the business. If there is significant interest, we schedule and facilitate a meeting between buyer and seller.

Negotiations and Letter of Intent

We conduct initial negotiations and work with the buyer to extend an offer and a Letter of Intent.

EXECUTE OFFER TO PURCHASE

We review and clarify an offer to purchase, negotiate price and terms, and counsel seller through the process.

Sign offer to purchase

Seller and Buyer agree to terms.

PHASE THREE

DUE DILIGENCE AND NEGOTIATIONS

The buyer conducts due diligence and we work to resolve and complete all outstanding issues.

Set closing date.

POST CLOSING

Sign the purchase agreement and other items necessary for closing.

We work with the closing attorney to assure everything is lined up for closing.

We help complete all post-closing details between seller and buyer.

CLOSING

Sign the purchase agreement and other items necessary for closing.

 

WHAT DO I NEED TO DO AS THE SELLER? 

 

Expect a reasonable price and terms

Buyers will not consider a business that is not priced competitively.

Have provable financials

This will increase the number of interested buyers who want proof of the sales and profits over at least a three-year period of time.

List furniture, fixtures, and equipment

The buyer will need a complete list of equipment and will inspect it to insure proper working order.

Appearance

The business that looks good sells first! Buyers will not pay top dollar if the business has not been maintained and is not clean, neat and in good repair.

Priced Right

Overpricing will lose you the sale; under-pricing will lose you money. We stay knowledgeable about today’s marketplace in order to price your business right the first time.

A Good Reason to Sell

Your motivation for selling is important to buyers. They are afraid you may be selling because of an undisclosed fact that could hurt the future business. You must show the buyer a good reason for selling; otherwise they will think the worst and walk away.

Timing

When an offer is made, you need to respond in a timely manner. Buyers are usually evaluating more than one business.

No surprises

Provide your broker with all the facts up-front. Most negatives can be overcome if the broker knows about them from the beginning.