Fundamentals of Selling A Business - Marketing and Prospecting the Buyer
To successfully sell your business, it
is essential that you know how to communicate its appeal,
and understand the factors that potential buyers have to
are hundreds of businesses for sale at any given
time. To make your business stand out, you need to provide
potential buyers with information that help them to make informed
decisions. A descriptive and well-organized selling memorandum will help in the sale
The memorandum would
provide your contact information, a brief description of the business,
business location, hours of operation, business asking price,
annual revenues, net earnings, number of employees, ownership
description, number of years established, leased or owned property,
and the reason for selling. You should also include a few paragraphs to describe the
benefits of owning the business.
Potential buyers should
sign a confidentiality agreement before you furnish them with the
selling memorandum. This memorandum should be true, accurate, and complete.
Marketing paraphernalia typically included are photographs of the business, company history,
overview of operations, financial summary, company strengths and
potential opportunities, as well as a list of assets.
Prospecting the Buyer
should be screened to ensure that their interests are compatible
with yours and that they have the financial ability to purchase your
business. Early in the selling process, you should determine the
buyers' sources of funds. Determining and dispelling any misconceptions on
financing prior to negotiating the deal saves both parties time and
money. You may want to suggest that the buyer consult with their accountant or financial
Click here to Sell a Business for free.
Click here to return to the Seller's Guide.