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.
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.
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.
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.