Steps to sell a business
If your business is located in the State of Florida and you wish to sell it, we will gladly evaluate - at no cost to you - if it has the appropriate conditions to be placed on the market on advantageous terms.. Working with an experienced firm substantially increases the chances of selling your business in less time, confidentially and at the best market prices.
Our method, tried and tested multiple times, ensures that assets are transferred from the seller to the buyer in a transparent and timely manner.
How to sell a business
The 6 steps that lead to the closing of a purchase-sale operation are the following:
Step 1 – Assessment:
Two valuation methods are used in the small business sector: the Asset Valuation method and the Earnings Multiple method.
The Asset Valuation method consists of adding the market value of the company's tangible and intangible assets. It is used essentially to approximate the price of firms that are losing money or whose cash flow is marginal.
The Earnings Multiple method, on the other hand, is frequently used to approximate the value of small companies that operate with profits.. The available cash flow, or profit of the owner, is determined by adding to the net income the wages and additional compensation received by the owner, depreciation, bank interest and non-recurring expenses. The multiple applied to the "owner's benefit" will depend on the type of activity of the company. However, it is usual for the small business sector to apply the multiple of 2.5, that is, the buyer would receive his investment back in a term of two and a half years.
Our business consultants will gladly give you a value judgment that will help you set the best price at which you can place your company on the market.
Step 2- Marketing
The placement of the company in the market requires experience and sensitivity on the part of our consultants. The information provided to the public must be sufficient but confidential in nature. Since our organization is affiliated with 23 specialized websites and operates on the highest traffic social networks, market exposure is broad and universal..
Our affiliation in Florida to the Association of Business Brokers and the Association of Realtors, allows us to incorporate business sales offers to the multiple advertising system that these organizations operate on the Internet. In addition, more than 500 brokers and over 12,000 Realtors have access to multiple listings and, therefore, are potential allies in the search for buyers for the businesses we offer.
It is mandatory in our company that the marketing plan of each business for sale is prepared in conjunction with the owner, who must approve it before its public launch.
Step 3 – Buyer Qualification
The information of the company for sale will only be delivered to potential buyers who have evidenced that they have sufficient funds, legal capacity and technical-managerial skills necessary to operate a business in the US. Once qualified, the Prospect must sign a confidentiality agreement in which you agree not to disclose the information received to third parties.
Step 4 – Offer
If after evaluating the preliminary aspects, the Prospect is interested in acquiring the company, the Prospect must make a purchase offer stipulating the terms of payment and the conditions that must be met before the closing of the operation. To evidence the seriousness of the offer, it is usual to place 10% of the amount offered in a trust account.
Step 5 – Company analysis (Due Diligence)
Once the agreement between the parties has been reached, the buyer may initiate the review of the accounting and administrative books as well as all aspects related to the activity of the company. The lease, the state of the movable and immovable property and the validity of the operating licenses are usually aspects of special interest during this step.
Step 6 – Closing the sale
Once the Buyer expresses his agreement with the process of analysis or due diligence the preparation of the Closing of the Sale begins. The closing agent, who is usually a specialized attorney, will be responsible for drafting the bill of sale, the promissory notes (if applicable), the lease agreement and all other documents that guarantee the effective transfer of the Seller's assets. to the Buyer.
On the day of Closing, the property is transferred but some commitments are temporarily maintained, such as the non-competition agreement and the obligation to train the Buyer.
For more information or to request our services, do not hesitate to contact us at firstname.lastname@example.org or fill out the following form
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