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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 MARKETING DOCUMENTS WILL YOU USE? Another great question I receive is what marketing
documents will I use? I generally use three documents: a teaser, a Business Listing information
sheet or BLI and a Confidential Memorandum. The teaser is a simple one page document with
a brief description of the business, the opportunity or reasons someone would want to buy the business,
pricing including terms and conditions and my contact inforamation. The teaser's intent
is to entice a prospective buyer to contact me and ask for a non-disclosure agreement.
The BLI is also a one-page document. It also provides a description; however, it also provides
additional detail on the deal structure, high level financials, lease or real estate information,
and the county and state where the business is located. A signed non-disclosure agreement
is required before a buyer receives a BLI. The BLI's intent is to provide enough information
on the business for the buyer to determine if they want to proceed.
The Confidential Memorandum is a much more detailed document usually 15-20 pages in length.
It provides an overall summary of the business, detailed financials, an in-depth overview
of the business's operations, and the name and location of the business. To receive a
Confidential Memorandum the buyer mus sign a NDA, verify their financial viability, demonstrate
competency, and be approved by the seller. The intent of the confidential memorandum
is to answer the buyer's basic questions about the business to minimize the seller's involvement.
A Confidential Memorandum is also useful to entice an out of area buyer to come visit
the business and the local buyer to make an offer.
A good description of the process is the more I learn about the buyer, the more I am willing
to share about the business. I am a match-maker afterall.
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.