Selling Your Business
Qualifying a Potential Buyer with The Buyer Pak. One of the unique systems we have is the Buyer Pak, which qualifies a potential buyer right away. Most buyers are what we call “Tire Kickers”. We help the Seller determine whether a prospective Buyer is a serious buyer.
BSA’s proprietary Buyer Pak, a five page document, is presented to all prospective buyers. They must complete & sign off on all documents before any seller information is given to them. The first page of the Buyer Pak explains and details our obligation to them and the seller. Additional financial Information and business experience is requested from the potential buyer as well.
12 Steps to Finalizing the Sale
- Once the Buyer is qualified, BSA resends The Buyer Pak with the Seller’s address to the Buyer.
- The Buyer is then instructed to visit and check out the business. It is recommended the Buyer go as if they were a customer. We instruct them not to discuss any business concerns or questions with the business’ employees, customers and/or neighbors.
- If the potential Buyer likes what they see and is interested in moving forward, BSA will arrange and conduct a meeting(s) between the Buyer and Seller. BSA will be present at all meetings.
- After the meeting, if the Buyer would like to move forward and requests the Buyer submit profit and loss statements and 3 to 5 years of tax returns.
- This step requires a good faith deposit from the potential buyer. This deposit is fully refundable and will be kept in a separate escrow account. Once the deposit is made, the docs will be given the Buyer.
- Pending buyer’s approval with his accountant and/or lawyer, the next step is to create an Agreement of Sale.
- Before this process will begin, a deposit totaling 10% of the agreed selling price of the business must be made. As before, this deposit will be kept in an escrow account and is fully refundable until the Agreement of Sale is signed by parties.
- Once the contingencies are agreed upon by both parties the Agreement of Sale is signed.
- After the contingencies are fulfilled, and the Buyer no longer want to purchase the business, they lose their deposit.
- The next and final process is signing the Closing Documents.
- All parties sign the closing documents, and payments to the Seller and Broker are to be made at closing by Bank or Certified Check.
- Congratulations are bestowed on Buyer and Seller for consummating the sale.
