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INTRODUCTION Hello. My name is Eric Gall. I am a business
intermediary with Florida Business Exchange in Southwest Florida. If you are looking to
sell your business, you likely have quite a few questions about the process. This video
short is one of 18 I have created in a series to answer your most frequently asked questions.
WHAT IS THE PROCESS FOR SELLING MY BUSINESS? First time sellers often ask, What is the
process for selling a business? The process can be divided into four phases: the planning
phase, the search phase, the deal making phase and the closing phase.
The planning phase begins with my explaining the process to the seller and obtaining their
buy-in. I then work with the seller to gather basic data and information about the business
including financial statements. Financial statements allow me to create a valuation
opinion report. If the seller agrees to my valuation, my suggested offering price. terms
and conditions, we write up a listing agreement. Once the listing agreement is signed, I prepare
the marketing documents. The second phase, or search phase, begins
with developing and initiating the active marketing plan. When buyers inquire, I request
a signed NDA and provide the BLI. I further qualify the buyer's financials and experience.
If satisfactory, I contact the seller to obtain approval to share a confidential memorandum
and detailed, recast financial statements. The third phase, or deal-making phase, begins
with the buyer's visit. This usually includes a tour of the business, preferably before
or after hours, and a brief Q&A session. I then follow-up with the buyer to gage their
interest. If interested, I discuss the offer process and ask the buyer if they would like
to proceed. If yes, an offer is written, presented to the seller, negotiations commence, and
hopefully completed with a signed preliminary agreement to purchase the business.
The final phase is the closing phase. After a preliminary purchase agreement is signed,
the buyer will want to conduct a deep dive into the history of the business to verify
the business has performed as presented. This is called due diligence. My role is to help
both sides resolve any issues that may arise. Some buyers may also require financing. Often
a loan package is required and it involves a significant amount of documentation from
both buyer and seller. Once prepared, I can introduce buyers to several lending options
including banks, SBA lenders and alternative sources of financing. The final two steps
are to complete the closing by scheduling the meeting, completing the necessary documents,
reviewing the documents, and finally collecting the appropriate signatures to close the deal.
CONCLUSION Thank you for listening. If you have any questions
about this topic, or any other topic, please do not hesitate to contact me at 239-738-6227
or eric@buysellflbiz.com. I'm here to help you prepare your business for your eventual
exit.