THE SELLING PROCESS
Selling a business involves a series of sometimes complex steps, each of which needs to be properly executed in the appropriate order to achieve maximum value for the business. With many years of proven experience our intermediaries have the focus and understanding required to meet a business owner's goals and objectives. The sale of a business is likely to represent the most important, and largest, financial event in the life of the owner. For most business owners, this important liquidity event will occur only once. The professionals at Mountain States Business Brokers at Keller Williams have the experience and know-how to help make this decision and complete the transaction.
Contact MSBBA to sell your Business
Evaluation - A thorough evaluation of the company, its operations and financial information
is an appropriate starting point. Knowing what your business is worth is paramount to the decision to sell. This evaluation can also identify those changes that need to be made to improve final value or make the selling process smoother and quicker. By understanding the current value of the business along with the factors that can add to or detract from final value, you will be able to make an informed decision to market the business.
Exit Planning - Once you have decided to sell your business, it is best to outline your priorities- both business and personal- before beginning the often times consuming and complex process of marketing the business. Business practices that are detrimental to value or financing of the transaction need to be identified and corrected. Financial statements and tax returns should be as free of personal and other non-essential expenditures as possible without regard to short-term tax consequences. We can identify those things that need to be changed and help you in making your decision. It is up to you to balance those changes with your personal needs and concerns.
Marketing Strategy - The universe of potential buyers for any given business is both diverse and unique. The buyer can be a current key employee, a competitor or an investor from another part of the world. Most main-street businesses are marketed today on 
the internet. However, there are industries and businesses that require specialized marketing techniques similar to those applied to the larger middle-market companies. Identifying those buyers generally takes longer and can be a time consuming process with a different order of execution. Our search begins with our own extensive and private database of active buyers, knowing that 4 out of every 5 buyers start out looking at a business other than the one they buy.
Buyer Screening & Qualification - Once we identify the potential pool of buyers, we must qualify them as to their geographic & industry preferences, financial strength, management & industry experience and credit worthiness. Even personality can be a factor in a buyer being successful or failing in a particular business. During this phase of the process, only limited information is provided to potential buyers in the form of a Confidential Business Profile and Earnings Analysis. We limit dissemination of confidential business information only to those with a “need to know”. More detailed financial information is usually made available only after initial direct contact between the Buyer and Seller.
Buyer will Visit the Business - A buyer will need to actually see the business, meet the current owner and make sure it “feels right.” Any visit to the business must be by appointment and coordinated with the broker, buyer and owner and will usually take place when employees and customers are not present. This is where the buyer will get a feel for whether the business is right for him or her.
The Offer - When the buyer is comfortable with the business you can expect an offer. The offer will include various contingencies covering review of detailed books and records, agreement on terms of non-competition agreements, etc. Contingencies for factors such as landlord approval of the lease transfer, financing and franchise requirements are out of yours or the buyer’s control and must be addressed as well.
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Rarely will an initial offer meet all of your expectations and counteroffers are generally expected. It might address a major consideration such as purchase price or terms, or it could be a small detail about training or clarification of a point. We will assist in negotiations with the goal of reaching an agreement acceptable to both parties.
Due Dilligence - Upon mutual acceptance of the offer buyers will enter into a due diligence period where they will be given an opportunity to examine the business in more detail. During the due diligence period, your broker will coordinate requests for documents and assist in arranging meetings 
with related parties to the transaction including professional advisors, the landlord, lenders and others as needed. The confidentiality of the transaction must remain intact during this period. If institutional financing is required, we can recommend various lending sources depending upon the type of financing needed. Contingencies will be released as the buyer becomes satisfied with them.
Closing on the Transaction - When all contingencies have been met and released it is time to start the closing process. The closing process must be handled by a competent attorney familiar with business sale and acquisition statutes and other technical requirements. The preferred method is to engage a neutral closing attorney who will prepare all the necessary legal documents, perform lien and title searches as appropriate, and make sure all necessary escrow and filing requirements are properly handled. The costs are shared equally by the buyer and seller. You and the buyer are encouraged to have your respective attorneys review these documents prior to the closing.
