Business Broker for Distribution Companies Orange County – Final Stages of a Business Sale

After hiring an experienced business broker for distribution companies Orange County recommends, his first duty will be to create the sales mandate, draft a blind teaser, prepare a sales notebook, and create a foolproof confidentiality letter or NDA. Your business broker also has to prepare a valuation report and map potential investors. The business broker will also help with marketing. In this post, we will cover what happens from negotiations until closing.

Agreement of intent

After bids have been acquired from potential investors, the next thing a business broker for distribution companies Orange County trusts will do is require buyers to sign the Agreement of Intent or the Letter of Intent (LOI). This is signed with the buyer who is the best fit for your distribution company. The LOI declares the commitment of both parties to start negotiations. The agreement sets the basis for negotiations and establishes a reference figure on the price that will be paid. Time limits are also set.

Binding offer

If the buyer feels comfortable with the offer, the Binding Offer is made. This is an offer with a legal value. It indicates the conditions of the purchase the investor offers to your company.

The binding offer opens the gateway to the due diligence phase. This is the most sensitive part of the business sale process. This step involves checking the documentation and all the information that was delivered. Therefore, a great deal of preparation is needed on the part of the seller. This is because irregularities can cause the whole deal to fall through.

Negotiations

If the findings in the due diligence stage are satisfactory, the sale will get to the negotiation stage. A data room may be programmed to help with the sharing of information. A controlled auction process is then held with participating shortlisted candidates.

Purchase Agreement

Once the right buyer has been found, and an agreement has been reached, it is time to conclude the sale. This involves the signing of a Purchase Agreement. The purchase agreement contains all the details about the transaction. This is the most important document because it gives conditions under which the sale will occur. Again, having a good team is crucial to help you get the best agreement for your distribution company.

As you can see, the sale of a company is very complicated. There are so many things that have to be addressed. This is why you need the help of an experienced business broker for distribution companies in Orange County to guide you through the sale. Hire a broker with a proven track record and a high success rate.

Business Broker for Distribution Companies Orange County

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

Agreement of intent

Binding offer

Negotiations

Purchase Agreement

The Sales Process