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The Business Sale Process

The business sale process can be broken into the following stages:

  1. Packaging - A Confidential Information Memorandum is created along with financial recast that introduces the business.

  2. Buyer Search - Buyers are researched and contacted. Those interested sign NDAs' to receive the CIM above.

  3. Buyer Meetings - Qualified buyers are introduced and a process of working through them until one stands out as a good fit.

  4. Offers and Negotiation - Buyer and Seller agree a commercial framework resulting in Letter of Intent (LOI) or Heads of Terms.

  5. Exclusivity and Due Diligence - The buyer looks at all aspects of the business and does post sale planning with the seller.

  6. Legal and Contracts - The appropriate legal documents are negotiated with the lawyers.

  7. Close - Contracts are signed and post sale begins

The one key aspect throughout the process is...people and complex relationships. Having an experienced advisor manage the process and work through the people issues is usually critical to success.

Resources - Make Your Business Attractive 

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Ken Gorman of Transworld M&A and author of "Selling Your Business" talks about all aspects of the business sales process. He covers a wide range of topics from valuation approaches to types of buyers.

You can download your free copy of Ken's book below.

 The Transworld podcast The Deal Board is a place for business owners and entrepreneurs to learn the best way to sell a business or buy a business.
Listen to Business Exit Experts. If you are looking to learn how to sell a business or need information on business valuation The Deal Board goes behind the scenes of the Mergers and Acquisitions world.
M&A and author of "Selling Your Business" talks about all aspects of the

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