Sunbelt Business Brokers of Phoenix is owned and operated by Chris Smith, CPA and has a group of professionals that offer a wide variety of business expertise. We offer business owners guidance on preparing their business for sale so that they can receive the best return on their investment. We assist owners in developing a strong, marketable organization that will command the highest value.
We can help your company in developing a plan to become more profitable and to ultimately leverage out and sell your business at the maximum value and terms available. It is best to start this process 2-4 years prior to selling.
We do this through:
STEPS TO SELL A BUSINESS:
1. Broker and Seller Meeting
A confidential meeting is held with the prospective seller to provide a preliminary business valuation, outline the services offered, answer questions, and provide information about the listing, marketing, and sales process.
2. Listing Agreement Signed
If the Seller decides to move forward, the Listing Agreement is signed and broker begins to collect listing information to create the marketing and business summary.
3. Confidential Business Opportunity Summary Approved
Seller reviews and approves the Confidential Business Opportunity Summary. The marketing ad is then placed on 3 different business opportunities websites as well as placed on our Partner Update that is distributed twice monthly to our prospective buyer database.
5. Buyer Screening & Non-Disclosure Agreement
Prospective buyers who contact the listing broker about the business are screened for financial capability and are required to sign a Non-Disclosure Agreement before receiving any pertinent details.
6. Confidential Business Opportunity Summary is Released
The screened buyer is then forwarded a Confidential Business Opportunity Summary to review.
7. Buyer & Seller Meeting
Buyers that have reviewed the Confidential Business Opportunity Summary and are interested in pursuing the sale of the business are then invited to a confidential meeting with the Seller to view the operations and ask questions about the business.
8. Offer Presented by Buyer
Interested Buyers are encouraged to write and present an offer which is then forwarded to the Seller for review. The Seller can then either accept the offer as written or write a counter offer with the help of the Business Broker.
9. Offer Acceptance
Buyer and Seller agree to all the terms and conditions of the Purchase Agreement. This includes any contingencies or conditions the Buyer may have attached to the agreement that must be removed or satisfied before closing.
10. Open Escrow
Signed purchase agreement and a pre-negotiated earnest money deposit from Buyer is placed in a third party escrow account. The Escrow Agent will perform a lien and judgment search on Sellers business. Any liens or judgments that arise must be satisfied before closing. Closing costs are split between Buyer and Seller.
11. Due Diligence Period
Buyer and their advisors begin a detailed review of the business, including financial records, tax returns, equipment leases, lease assignments, etc. On average, a Buyer’s due diligence period can last anywhere from 2-4 weeks. This time period is also used by the Buyer to remove or satisfy any and all contingencies that may have been attached to the agreement.