See prior blog entry for parts I – V
VI. Once the listing is taken, the broker’s job is to market the business for sale. Typically the specific business name and location is kept confidential. Marketing has some routine features such as the Internet and my personal network. Other marketing components can be unique to each business, i.e. letters, phone calls, emails.
VII. Purchase prospects identified are screened for capability and true Interest. Those who are interested sign do-no-harm and confidentiality agreements. Then they are given the owner approved marketing package. With continued interest, the seller and buyer with me can talk via phone or in person. Sometimes the buyer will request additional information that the seller may or may not be willing to share, until an offer is agreed to. Note: It is not unusual for the parties to not meet until close.
VIII. If an offer is to be made, I have a time-tested, legally-drafted purchase agreement to adapt to each offer, each business. It is submitted with a check for escrow, comes with net worth and credit reports particularly with those asking for owner financing, allows for proper due diligence, negotiation of leases, securing financing, non-competes, training and more. If the offer is, after counters, etc, agreed to, due diligence begins.
IX. Assuming nothing falls apart during due diligence, both parties sign off to a neutral attorney. The attorney drafts the final documents. Both sides have time for legal and accountant review. Inventory is taken. Closing occurs and money is distributed. The parties share in the cost of the attorney which is typically less than $900 per side.