After deciding to sell your business or company, your must establish an asking price of value. Once a proper value has been established for your company, the next important step will be the Marketing Process. Typically, after receiving general blind information on your company, a qualified Buyer will enter into a Non-Disclosure or Confidentiality Agreement relative to your transaction.
A Professional Business Brokerage Firm will prepare a Confidential Memorandum Book which will provide all information on the company, industry, market area, employees, facilities, financial statements and tax returns, company marketing material and all pertinent information for evaluation. This professionally prepared book will be utilized by the Buyer, CPA’s, Attorneys, Consultants, and Lenders. It is a vital marketing tool to sell your company.
The marketing/advertising process also includes print advertising in local, regional and national publications handled professionally to maintain confidentiality. The Internet has become a popular search mechanism for serious Buyers. A professional firm will select the most effective, secure web sites for this form of marketing and are experts in communicating with Buyers.
A Professional Business Brokerage Firm will also have a proprietary database of pre-qualified buyers and have access to a confidential national database as well. This fact alone justifies being represented by a Professional Business Broker. Real estate agents and others have a history of being unable to access qualified buyers in a confidential manner when attempting to sell a small business.
The Marketing phase is an important part of the process and must be controlled by an experienced professional to maintain confidentiality during the transaction and create a pool of financially qualified Buyers interested in your company.
PUBLISHED IN THE SOUTHCOAST BUSINESS BULLETIN – SEPTEMBER 2014