The sale of a business involves many stages. The first stage is deciding on whether to sell. In this stage, you need to know why you are selling. Selling for the wrong reasons can keep you from ever closing the deal. To make sure you are not making mistakes, you will have to involve an experienced business broker for distribution companies San Diego trusts. The role of the business broker is to help with everything from finding the right reason to sell and preparing the paperwork to help with marketing and negotiations.
Some of the initial documents that your broker will help you work on are the sales mandate and the blind teaser. The sales mandate specifies the costs derived from the sale will be for the sold company. The blind teaser, on the other hand, is a blind profile used to lure potential buyers in without disclosing any information that may make it possible to identify your company. The business broker for distribution companies San Diego trusts will also help create a sales notebook. This is a document that gives more information about your company. It is meant to help buyers know if your company is a suitable investment.
Once these documents are ready, you can commence with the sale of your business. Here is what you will need.
You will first need to know how much your distribution company is worth. For this, your business broker will perform a business valuation. Preparing a valuation report is a very important job. It allows for better negotiations with investors and helps maximize the sale price of your company. A valuation report gives you a logical and worked numerical arguments to support your case. A valuation report further helps you know where your business stands in the market.
Mapping potential counterparts
The next step is to create a list of potential counterparts. This involves the creation of two lists, one with a longlist and the other with a shortlist of investors that may be the perfect match for your company. The mapping of potential counterparts helps you know who to reach out to first when marketing your business. Next, contact all the candidates that might be interested in buying your distribution company.
As you reach out to potential buyers, remember that the best buyer is not always the most obvious. So cast a wider net and always require potential buyers to sign a confidentiality agreement or NDA before disclosing any information. Keeping a business broker close in this stage will keep you from making dire mistakes.