Selling Your Business: The Need for Documentary Evidence
You've done the hard work and built up a business - now you're thinking of selling it. You only get to sell your business once; and a well-prepared sales document can make all the difference.
Often referred to as an information or sales memorandum, it's designed to do just as it suggests: sell your business. In essence, you need to view your sales document as a business plan, but in reverse. Preparing it can be one of the most time-consuming parts of the sales process, but this document is often the only way for a potential purchaser to judge whether to proceed to the negotiation stage.
Yvonne McDougall, director of corporate finance at Deloitte & Touche, offers advice: 'You need to highlight salient points and cut out the waffle - it saves a lot of time. Outline the unique selling point of the company product or service, and include information on the quality of management, company track-record, financial history, markets, customers and suppliers. Outlining future prospects is also a good idea.' The content of your sales document will depend on whether you are considering a trade sale (approaching a business of a similar nature) or a sale to institutional investors (such as private equity providers), with or without management involvement. With a trade sale, it's not necessary......
The remainder of this article can be read on our members section
Other topics covered in this article
Sales Document - what to include
How to prepare for due diligence
Advice from Industry experts
Common mistakes
Presenting an opportunity to acquire a very profitable plumbers and heating merchants business operating nationwide.
Popular and well-regarded Sushi and Ramen restaurant and takeaway, which is situated in a prime city centre location in Norwich. The premises are set over three floors and are presented to an extremely high standard throughout and offers the opportun...
LEASEHOLD
Established respected business, holding valuable private and public sector client base, there being a number of key clients, some paying a retainer and from which regular repeat business is received ensuring a substantial pipeline figure.
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