As you get ready to sell manufacturing business, it is always wise to get familiar with all the steps that will be involved in the sale. Our team at So-Cal Business Brokers has been selling businesses like yours for more than 20 years. We are happy to answer any question you may have and ensure that you not only close fast but for the best possible price. An important area we encourage you to learn about is the due diligence stage.
What is the purpose of due diligence?
The due diligence stage as you sell manufacturing business starts after you and the buyer agree to the initial terms. In this stage the buyer will want to learn more about your business to make sure it is a worthy investment. They will want to review commercial aspects of your manufacturing business such as key customers, staffs and contracts. The goal is to ensure your claims are accurate. Our team will help you prepare for this phase sufficiently.
The first thing we highly recommend is to never start the due diligence until you have agreed to the price offer given by a buyer and the terms. This is because you don’t want someone that is not serious about buying your business to learn more about your trade secrets. Our team will help prescreen buyers and disclose information in phases. That is why a buyer will not get to the due diligence phase until they agree to the terms and selling price.
The investigation period usually runs simultaneously with the legal process. The two are linked although all sales differ. Contact us now to learn more about our approach as we help you sell manufacturing business. We are a team that believes in complete transparency as we help clients sell.
What is involved
In the due diligence phase, the buyer will want to spend a little more time at your premises reviewing your documentation and at times observing how things work. To maintain confidentiality, we try to get as much work done off-site. We also help you control the process so that the buyer doesn’t use it as an excuse to renegotiate.
Due diligence typically covers the following:
- Your business’ past and forecast financial performance
- Valuation of the business
- Tax and legal compliance
- Customer contracts
- Protection of intellectual property
- Outstanding legal issues
Our job at So-Cal Business Brokers is to help you close the deal at the best price. To do this we control everything throughout the sale and negotiate on your behalf to get the best terms. Give us a call now to find out more on how we can help sell manufacturing business. We offer a free consultation.