Our Simple 9 Step Sales Process
STEP 1: VALUATION
A pre-sale Estimate of Value is the first step in determining if your business is positioned to sell and if a sale would meet your financial needs. It provides you with an objective price range that you can expect in the current market. We can provide this at no obligation.
STEP 2: LISTING AGREEMENT
A contractual engagement agreement is entered into between you and Pappas Business Advisors, giving us the right to market the company as your representative for a specified time period (typically 12-24 months). Once a agreement is in place, we gather an array of data in preparation for launching your business into the marketplace.
STEP 3: MARKETING
With the data provided and your input, we bring your business to the market and attract potential buyers. The cornerstone of this campaign is a detailed business profile, which is a document that educates buyers about the operation, facility, marketing, financial status and future opportunities of the business. Our aggressive marketing program ensures your confidentiality and provides maximum exposure for your business.
STEP 4: BUYER SCREENING
Before receiving sensitive information about your business, we works with each buyer prospect by having them sign a Confidentially Agreement and determining if they are qualified financially and/or strategically to purchase your business. We field buyer questions as best we can using the data provided during the info gathering period, contacting you only when required.
STEP 5: MAINTAIN BUSINESS OPERATIONS
During the entire process you are responsible for maintaining or improving the value of your company by tending to daily operations. This is an important step, the worst thing you can do at this point is ignore your business, potential buyers with recognize this immediately and back away from pursuing.
STEP 6: THE BUYER / SELLER MEETING
Depending on the type of business you own, we will confidentially schedule all meeting at your convenience. An appointment for a buyer and seller to meet is usually made when a buyer is considering making an offer to purchase the business. The buyer would have already reviewed the business profile and financials and received answers to their questions. It is common for sellers to require that all such meetings be during non operating hours to avoid premature disclosure to employees and customers. This is the chance for the buyer to tour the facilities, ask questions and get a feel for what it would be like to walk in the owner's shoes. However, this meeting is not the time to discuss the price and terms of the sale. A will be the liaison for the two parties on that subject.
STEP 7: LOI / OFFERS - Letters of Intent
We presents all offers and negotiates on your behalf. Appropriate negotiation is crucial to achieving a successful sale. Half the job is finding the right buyer, the other half is getting to the closing table. The deal must achieve a win for both parties and we have the expertise required to conduct sound negotiations that can make that happen.
STEP 8: DUE DILIGENCE
Once a contractual agreement or Letter of Intent (LOI) has been entered into between the buyer and seller outlining the price and terms of the sale, the due diligence period begins. We will coordinate the due diligence process. This is the time when the buyer requests from the seller any documents and materials needed to verify all representations made by the seller are accurate. Depending on the size of the business, a buyer will typically have about two weeks to complete this inspection process.
STEP 9: CLOSING
We will facilitate the closing process once the buyer authorizes closing activities to commence. We coordinate with the principals and their advisors, landlord, lender, and others to insure that all necessary paperwork is completed on time. The buyer and sellers attorney will conduct lien searches, prepare closing documents, such as a bill of sale, note and security agreements, closing statements, and non-compete agreements prior to closing for all parties to review. Final preparations will be made for lease assignments, utility transfers, financing, merchant service accounts, inventory counts, alcohol or other special license transfers, and any other last minute preparations to make the transfer as seamless as possible. After the closing documents have been approved by the principals, a closing date is scheduled. A formal closing takes place in our office where legal documents are signed, funds are received and ownership is transferred. We realize that you depend on us to guide you through every step.
