Distribution Business Broker - Understanding the Sales Memorandum before Selling Your Business

Hiring a distribution business broker will increase chances of not only selling for maximum profit but also selling fast. This is because the broker has sold many businesses like yours before and knows how to handle challenges. At So-Cal Business Brokers, for example, we have been selling distribution businesses for more than 20 years now. We know what buyers are searching for and how to get you the best price. Even so, you need to familiarize yourself with some of the key documents involved in the sale. We will be handling everything on your behalf but it doesn’t hurt to have a little knowledge. One of these documents is the sales memorandum.

What is it?

The sales memorandum is the first marketing document used to spark interest in your business. Our distribution business brokers will create this document for you after familiarizing ourselves with your business. This document is not legally binding but it is very important in the sale of a business.

Our team is in the best position to draft this document for you because we know how buyers think. We are involved on a daily basis in the sale of businesses and so we understand the process and the market better than you.

What is included?

As aforementioned the main purpose of the sales memorandum is to provide potential buyers with basic information about your distribution business. It also covers what the sale will include. The main details included are:

  • Your business sector / industry.
  • How long the business has been trading
  • Main financial details such as cash flow, total debt and asset value
  • Job descriptions of the main employees. Their salaries and other benefits may be included
  • Preferred sale structure
  • Location of the business premise

Our team has handled numerous sales. We are able to word the sales memorandum in a way that sparks the most interest in potential buyers. Even so, we don’t offer false information. We understand that the sales memorandum should be truthful else it will lead to trouble later on. We win the confidence of buyers by being as positive as possible. We will highlight the special features that your business has, identify opportunities for future growth and ways to improve profits and so on. All in all, the document must never include confidential information.

Give our distribution business brokers a chance to sell your business. We know what needs to be done to get the best results. Contact us now to take advantage of our free consultation. We are always happy to hear from you.

Distribution Business Broker

Show Comments