BUY/SELL PROCESS
Buying a business can be a challenging, but very fulfilling experience. Sundown Business Brokers assists the Buyer and contributes to the transition by offering guidance and education at every step in the process.
The process of selling a business can be a very productive and rewarding experience. Sundown Business Brokers goes the extra mile to ensure that its clients reach their goals.
Buyer’s Process
- Buyer Interview
At our initial interview, we discuss how we can best meet your needs in terms of business type, location, amount of investment you wish to make. We request a buyer profile and financial statement from you as proof of ability to purchase the businesses presented to you. All of this information is strictly confidential. The more we know about you, the more likely we can find a business you will like. - Confidentiality Agreement
Each buyer is required to sign a confidentiality agreement to protect all parties concerned in the process. You sign an agreement promising not to disclose the confidential information we provide to you about the business. - Search Business
We discuss and review various types of businesses in our database and select some that may fit your interests and investment potential. - Showing the business
A meeting between you, the seller and us may take place. This gives you the chance to ask questions about how the business operates in and to describe your qualifications to the seller. - Letter of Intent
Once committed, you prepare with our assistance a non-binding Letter of Intent (LOI), in which the conditions and contingencies to the purchase of the business are established, accompanied by a deposit as a gesture of seriousness of the offer. We will present the LOI to the seller and engage in further negotiations in order to gain its acceptance. - Due Diligence
This process is the most important step in ensuring that the transaction is completed in a successful manner. You verify of all the aspects of the business (financial records, legal, fiscal, etc.). You will have a pre-determined due diligence period in which to investigate the information to ensure that it is true and accurate. If you are satisfied with the due diligence, the offer becomes a Purchase and Sale Agreement, we may proceed to settlement. - Settlement
The settlement is the final process in the business purchase phase. The drafting of the closing documents are coordinated by us to ensure that they are prepared and tailored to meet the individual needs of each buyer. The transfer of funds and the sale process is completed.
Seller’s Process
- Seller Interview
At our initial interview, we discuss your needs for selling the business. We help you with business valuation; discuss the marketing and advertising of the business. Proper preparation is necessary for the best presentation of your business and is required in order to provide meaningful insight to prospective purchasers to complete the purchase transaction. We assemble financial and general information on all aspects of your business. The more we know about your business the more likely we can sell your business. - Collect Data
You provide us with all the necessary documents and data required to sell your business. We will need three years of financial record including Tax Returns, P&Ls, and Balance Sheets. We will also need copies of your current lease, inventory and equipment. All these necessary documents will determine the value of your business. - Business Valuation
The first step in selling your business is to figure out how much it is worth. We analyze your business and the financial documents you provided and suggest a realistic price and reasonable terms for the market. - Listing Agreement
Once we have agreed on the price of the business we will sign a Listing Agreement and start to market the sale of your business. - Develop Marketing plan
We advertise your business to get the highest possible response and the greatest numbers of prospects. There are many channels which we utilize to generate qualified buyers for your business. We list your business for sale on popular marketing network. We also maintain our own database of qualified, interested and knowledgeable buyers. - Contact Potential Buyers
We interview buyers to qualify those who are able to purchase a business at this time. We determine the buyer’s interest level, management skills and ability to meet the financial requirements of the transaction. Not only to you want to ensure that the buyer has the skill and determination, you first want to determine the buyer’s ability to close the deal. Before we disclose any information about your business, we obtain the following documentation from each prospective buyer: (1) Confidentiality Agreement; (2) Buyer Profile Form; (3) Personal Financial Statement Form. After we receive these completed documents, they are carefully reviewed and maintained within a file established for each prospective purchaser. Thereafter, we provide the prospective buyer with some basic information about the business in the form of a Business Profile prepared by us. - Showing the Business
We may set up a meeting with you, the potential buyer and us. This meeting helps to prove the buyer’s interest and provides an opportunity to learn more about the buyer and answering any questions the buyer may have about the business. - Letter of Intent
We encourage potential buyers to write a fair offer. We will present the offer for purchase to you. At this time, we can provide you with background information on the buyer and explain the buyer’s terms and condition behind the offer. You may accept the offer as presented or make a counter offer. - Buyer’s Due Diligence
Nearly all offers are contingent upon the buyer’s inspection and approval of all aspects of the business operation, including financial records. The buyer begins the process of due diligence and inspects detailed accounting records and business information. The due diligence process is the most important step in ensuring that the transaction is completed in a successful manner. If you satisfy the buyer with the due diligence, the offer becomes a Purchase and Sale Agreement, we may proceed to settlement. - Settlement
The settlement is the final process in the business purchase phase. The drafting of the closing documents are coordinated by us to ensure that they are prepared and tailored to meet the individual needs of you as the seller. The transfer of funds and the sale process is completed.