There are several phases involved in the sale of a business. How you tackle these phases will determine how fast you sell and how much you get from the sale. Working with a business broker for internet companies Orange County trusts will help you tackle these phases properly and guarantee you end up with the best possible results. Let’s take a look at the phases involved in the sale of an internet business.
This phase focuses on reaching a sale agreement with the shareholders. It also includes getting the business ready for sale. In this phase, two documents must be prepared: a blind profile and a company’s sales notebook. A business broker for internet companies Orange County recommends will be happy to help with these key documents. The sales notebook reflects the reality of the internet company and its most positive aspects. It gives potential buyers the information they need to assess the purchase. Your business broker in Orange County will need more information about your company before preparing a sales notebook. This can be done within a month.
Business valuation phase
The next phase is determining how much your business is really worth. Then again, a business broker will be able to perform a business valuation and provide you with a detailed valuation report. This will also take about a month.
Investor search phase
This is one of the most time-consuming phases in selling a business. It involves reaching out to interested buyers and providing them with blind profiles. A business broker will reach out to contacts already on his list, use his professional network, and post the blind profile on their website and listing sites. Once an interested investor is found, they have to sign a confidentiality agreement before any additional information is shared with them. It is also the duty of the business broker to prescreen every buyer before sharing any information with them. This phase can take 2 months or more.
Buyers will not purchase your business at the asking price. Instead, they will negotiate both the selling price and the terms. Negotiations involve many conversations and compromises. The buyer will request a ton of information and consult with his team. The seller will also do the same. This period can take up to 2 months.
Due diligence phase
This phase involves professional analysis. It helps the buyer determine the actual value of the business and gives them a chance to look around and decide if your business is a good fit. This phase can take up to 3 months.
If both parties are satisfied, the closing phase will start. This involves the preparation of a Sales Contract or a SPA. A specialized commercial attorney prepares this document, and this phase will take 1 to 2 months.