What To Expect In The Business Selling Process And What Will Be Expected Of You
What You Can Expect From RMS and Company As A Seller
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 Your Business For Sale
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.
We screen potential buyers and create a secure buyer profile along with a confidential agreement and financial statement.
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
Due Diligence And Negotiations
- 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.
What Will Be Expected 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.
Business appearance is key
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.
The business is priced right
Overpricing will lose you the sale; underpricing 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.
When an offer is made, you need to respond in a timely manner. Buyers are usually evaluating more than one business.
Provide your broker with all the facts up-front. Most negatives can be overcome if the broker knows about them from the beginning.