Whenever a business owner decides to sell, there are a lot of steps involved so that the final deal turns into a success. Along with getting assistance from a professional business broker, a lot of paperwork needs to be put together so that everyone involved is on the same page and to ensure that legalities are all met.
Because there are so many different forms, understanding what each one involves can become confusing. To help make it all seem less overwhelming when you approach a broker business in Orange County, CA, this article will review the most important papers you must look at or sign.
If you want to sell, contact PBS Brokers for the finest assistance. Not only does their website offer a step-by-step sales process, but they can further explain all of the documents mentioned below. They have provided successful sales in a variety of industries for over 20 years, making them a trustworthy agency to turn to.
So that you do not suddenly stop working with them in the middle of the sales procedure, your business broker will have you sign a representation agreement in which you state that you will stick with them throughout the process. As a legal contract, you are putting all of your faith in that the results will be a success, so it is vital that you research the broker’s past outcomes.
Whenever you decide to partner with a business broker on your sale, they will prepare a confidential information memorandum (CIM) that will later be sent to potential buyers. This document acts as a general overview of your business, from its location and history to its overall branding. This will let them know for sure if they would like to move on to negotiating a deal with you.
Your broker will get this information by conducting an assessment of you. It is vital that you are as honest as possible with them through this phase so that you do not run into any issues whenever it comes time to make a deal with a buyer.
A benefit of working with PBS Brokers is that they keep the sales process discreet by keeping your personal information confidential and only sending details out to their in-network group of potential buyers. These individuals must sign a non-disclosure agreement (NDA) whenever interest is shown.
The reason an NDA is necessary is so that they do not release details about how you are selling. You may not be ready to make it public that you are stepping down from your position, and it is crucial that there is a legally binding protecting you. If they hear it from someone else, your customers or staff may lose their faith in you and stop patronizing your business overall.
Whenever people begin to show interest in your business, they are sure to reach out. However, considering anyone could be attracted to the purchase, you must know whether or not they are the right match for your brand. To vet the candidates, your PBS Brokers agent will send out a buyer profile for them to file.
This document is much like a resume, as the person will discuss their previous owner experience, what industries they have worked in, and also provide references. After looking through all of the ones sent back, your agent can show you the people who suit your standards most.
Just as important as it is for you to find a buyer that you are pleased with, it is essential that said buyer knows exactly what they are getting into. Before they agree to buy, your agent will present them with the due diligence document, which goes over the revenue of your company as well as all of the costs that go into running your business. It will also give them a general assessment of how things have run over the years.
In order to provide accurate information, your business broker will have you gather all of your past taxes and any auditing your business has, along with loans and credit information. Due diligence is important because it keeps the buying and selling process transparent for all parties involved.
Whenever a final deal is made, and all parties are set on the sale, both you and the buyer will be given a purchase agreement to sign. This will show what is included in the transaction and how much the deal was. Along with the business itself, the sale may consist of trademarks, branding, and additional assets. It can be seen as a general sales invoice.
This agreement will also include between 4-6 weeks of training and consulting from you to the buyer. This makes the transition process run smoothly as this new owner adjusts to how your company operates. If they end up needing any more assistance, your PBS Brokers agent will help file another negotiation.
PBS Brokers Has the Resources to Help
While having to look over so many forms can feel overwhelming, they are all essential parts of a sale. Without them, important details regarding the business could go unnoticed, and it could lead to its overall downfall in the future. Because it can be hard to understand unless you have experience in past sales, PBS Brokers is able to lay it all out for you.
They are aware that this is an exciting yet stressful time for you, so their business brokers strive to simplify all aspects of the task when you choose to collaborate with them. You’re still running your business at the moment, and trying to jump through hoops knowing what each document means should not have to be an added stressor.
Even before signing an agreement with them, PBS Brokers offers free assistance. With their value analysis tool, you can find out the worth of your business at its current standing. This allows you to make some necessary changes so that you can get even more money during your sale.
They have serviced businesses of all sizes, with experience ranging from construction zones to e-commerce. They are so sure of their craft that they provide many testimonials and success stories on their website, www.pbsbrokers.com. Here, you can even find podcasts and books that give further details on how to sell a business.
Along with making things easier on the seller, PBS Brokers also helps buyers. Not only do they make sure they know what to expect from their purchase, but they also help make sure that they get loans for the investment using financing from the Small Business Association (SBA).
If you are prepared to sell your business, don’t let the documentation involved make you hesitant to move forward. Your business broker from PBS Brokers will explain it all to you while making sure you find the perfect buyer. With their assistance, you’ll be able to turn to a retirement life without worrying about a sales mistake.