The business sale process explained

The Business Sale Process Explained

The business sale process explained

If you’re new to the world of business sales, the process can be a little intimidating. But there’s nothing to fear about the business sale process when you understand what’s involved each step of the way. Enter Core Business Brokers. With over 85 years of collective experience in business broking in Sydney, we’ll guide you on your business sale (or business purchase) journey!

Before your business sale

Before deciding to embark on a business sale journey, many boxes need to be ticked to ensure the sale is the right option for you. These include:

  1. An initial meeting here at Core Business Brokers to discuss your options and have your questions answered.
  2. A business appraisal. Our team will assess the current market as well as your business performance (alongside other important factors such as growth and industry trends (called a S.W.O.T analysis) to determine a fair and realistic business price range. 
  3. Get organised! This means tidying up your operations and organising your financial documents, contractual agreements, staff details, leasing information, etc. It’s important to be transparent and accurate with potential buyers when aiming for a successful business sale transaction. 
  4. We’ll take care of the advertising. That’s right! Whether it’s listing your business on the appropriate websites or advertising it privately to our ever-growing database of qualified buyers.

During your sale journey

During the sale process, you can be assured that your business and all information about your business will be kept confidential. Any interested parties will be required to sign an NDA (non-disclosure agreement) which prevents parties from sharing your confidential business information. Here at Core Business Brokers, we pride ourselves on our discreet and professional conduct from beginning to end.

  1. Once the business is advertised for sale, we welcome all enquiries and vet them to present any serious buyers to you, the seller.
  2. Once a buyer is selected, then comes the offer and negotiation stage. The buyer will submit an offer to you and we will help you negotiate the sale. Our aim is to provide you with some options of a few buyers, so that you can select who you believe to be the best buyer
  3. At this point, a Term Sheet may be utilised. Although not mandatory, the Term Sheet outlines the agreed terms and conditions and acts as an assistant for the contract of sale to be drafted more efficiently by your Solicitor. This can lower costs for both the buyer and seller, as it lessens the back and forth between parties when the contract is being drawn up, thus reducing legal costs.
  4. The buyer will then be allowed a set period to conduct their due diligence. Together with their legal team and accountant, they will review the financial and other critical information presented and address any concerns before they confirm their agreement to proceed to the settlement date.
  5. Time to sign! With the assistance of solicitors, the contract is drafted, edited and then finalised – ready for both parties to sign. At this point in time, a deposit is paid by the buyer, which is held in trust until the settlement date.
  6. When the settlement date arrives, an up-to-date stocktake occurs and the buyer then pays the remaining balance of the business purchase price to the seller. At this time, the seller transfers the business and all included assets into the buyer’s name.

If you’re considering selling your business, contact Core Business Brokers today. Together, we’ll plan your business sale journey and talk you through the sale process, tailoring the process to you and your individual business. Chat to our team today on (02) 9413 2977. Or email Roy directly at [email protected] or Rad, at [email protected] 

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