Due Diligence Stage When Selling a Business
Commercial business sales Bradbury involve several stages. The process starts with the decision to sell followed with hiring the right team. You then need a business valuation report and set the right selling price. The seller then markets the business and starts meeting up with clients. A Letter of Intent is then submitted and due diligence commences. At So-Cal Business Brokers we are committed to making the process as hassle free as possible. If you are at the due diligence stage as a seller, our in-house team will be of great help.
Letter of Intent LOI)
Due diligence commences after the LOI has been submitted. The LOI is submitted to the seller by the interested buyer. One of the things this letter describes is due diligence. So-Cal Business Brokers job in commercial business sales Bradbury is to ensure the LOI is properly worded. We ensure the terms in the LOI are acceptable and foolproof. We ensure the letter of intent gives you an upper hand throughout the sale. Our team will further help negotiate terms in the LOI.
The LOI describes the length of time for due diligence. This duration varies and can be a week or two weeks long for small businesses. We have sold many businesses before. Our team will be able to determine how much time will be needed for due diligence based on the size and type of your business.
Focus during due diligence is to verify the claims that have been made by the advisor and seller. Buyers will request documents that validate your claims as a seller. The confirmation documents requested can include balance sheets, profit & loss statements, tax returns, credit card and bank statements. To paint a clearer picture of the business you want to purchase, the buyer may need to review contract documentation that relate to employees and customers.
After gathering all the information about the business, the buyer makes the big decision; to buy the business or to decline the LOI? Our duty at So-Cal Business Brokers is to help you convince the right buyers to purchase your business. We will handle all the negotiations and present your business in the best light possible.
When a buyer decides to move forward and purchase the business, the LOI will translate into a purchase agreement. This is the closing contract. The closing contract has to be signed by both the seller and the buyer officially. Our in-house transactional attorneys will have your back in this stage.
Do you need more information on commercial business sales Bradbury, due diligence or how to sell your business? Visit our website and schedule a free consultation with one of our experienced business brokers today. So-Cal Business Brokers has your best interests at heart.