As a company owner, there is a chance you have never handled a business sale. This is unless you are focused on the creation and sale of businesses. If now is the first time you are thinking about selling, it is always good to start by hiring a specialist to help. In this case, the specialist you will need is a business broker for manufacturing companies Orange County stands behind.
The business broker will play a crucial role in selling a company, more so when you consider the fact that selling a business is surrounded by technicalities and processes that might be overwhelming. The sale process is quite complex. Without the help of an experienced business broker for manufacturing companies Orange County trusts, you might end up failing. Next, you need to know the documents that will be necessary. In this post, we shall be looking at the crucial documents you need during the sale of a business.
After deciding on the sale process to use, the next thing you will have to do is sign a sale mandate. This document gives details on the costs derived from the sale of the sold business. The signing of the sale mandate is what initiates the sale process. When your business broker or consultant starts working on the sale mandate, he will require certain information about your business. This information is crucial for preparing the documentation needed to execute the sale process.
This is the first document your business broker in Orange County will produce. It is a blind profile that includes the characteristics of your company. It doesn’t have information that may allow someone to identify your manufacturing company. This is the first document that will be shown to potential buyers. In most cases, blind teasers are about two pages long. They have a description of the main characteristics of your company, reasons for selling, key financial figures, profits and debts, expected growth projection, and the advantages the business can bring to an investor.
If a buyer is interested in learning more about your business and has the financial means to acquire it, they will be required to sign a confidentiality letter or an NDA. After that, the sales notebook will be presented. This document includes the following:
- Executive summary
- Financial data
- Vision of the sector and subsectors
- Study of the company
- Growth potential
- List of competitors, competitive strategies, and market share
The objective of the sales notebook is to offer investors information that helps them know if the investment is good for them or not. The sales notebook reflects the reality of your manufacturing company.