Selling Your Business?

Imagine you’ve decided to sell your Business. The first question a Buyer will ask would be, “Why?” Owners commonly sell their businesses for any of the following reasons:

Some business owners consider selling his/her business when it is no profitable, but this can make it harder to attract buyers. It is essential to consider the Business’s ability to sell, its readiness, and your timing. Many attributes can make your Business appear more attractive, including:

• Increasing profits

• Consistent income figures

• A strong customer base

• A long time in Business

• A major contract that spans several years

TIMING OF THE SALE
It’s a good idea to prepare for the sale as early as possible. The preparation will help you to improve your financial records, business structure, and customer base to make the Business more profitable. These improvements will also ease the transition for the buyer and keep the Business running smoothly. It is also essential to understand that a healthy company, well documented with clean books, will sell easier and faster.

VALUATING YOUR BUSINESS
Perhaps the right Valuation of your company is the most critical step you have to take when you start the process. You’ll want to determine the worth of your Business to make sure you don’t price it too high or too low. We usually do a preliminary valuation for our clients that will indicate a range of an asking price for the Business based mainly on some models of the market approach and income approach. If it is necessary, we can also put together a formal valuation for our clients, which will bring credibility to the asking price and can serve as a gauge for your listing price.

Steps to Selling Your Business

1. PRICING
We analyze your business and suggest a realistic price & terms. To determine the right value of your business we have to perform a Business Valuation, which is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. Three different approaches are commonly used in business valuation: Income Approach, Market Approach, and Asset-Based Approach. Business Valuation is a critical process because if you price your business too high, you'll scare away buyers but If you price it too low, you'll risk selling at a bargain basement discount. Your goal is to figure out a range that's realistic.

2. ADVERTISING
We advertise your business to get the highest possible response and the greatest numbers of prospects worldwide. We use specialized Web sites such as Mergernetwork, Bizbuysell, IBBA, Businessforsale among others. Additionally we contact Private Equity Groups, Investing Firms, and Investing Banks worldwide that specialize in the industry to look also for potential buyers. Mejia & Associates Inc will help keep information from leaking out prematurely.

3. SCREENING
Interview of buyers to eliminate those who are unable or not ready to purchase you business at this time.

4. INTRODUCTION
Presentation of the business to qualified potential purchasers. We discuss the various components and benefits of the business with the potential buyer.

5. MEETING
A possible meeting with you, the potential purchaser and our team is set up, to prove the buyer's interest and give an opportunity to learn more about the buyer. Transportation and expenses paid by seller.

6. ASSIST WITH FINANCING
We have several financial resources to help the buyer to get the financial resources in case are needed and work with several Private Equity Groups.

7. OFFER TO PURCHASE
We encourage buyers to write a fair offer accompanied with an earnest money deposit check.

8. PRESENT OFFER
We will present the offer for purchase to you. At the time, we can provide with background information on the buyer and explain the buyers reasoning behind the offer.

9. ACCEPT THE OFFER
You may accept the offer as presented or you may use our knowledge and experience to structure a counter offer.

10. EXPLANATION
Explain the terms and conditions of the offer to you.

11. MULTIPLE ACCEPTANCE
At this critical point we use our negotiation skills and expertise to create a mutually acceptable agreement that becomes a contingent purchase and sale agreement.

12. INSPECTION & DUE DILIGENCE
Nearly all offers are contingent upon the buyer's inspection and approval of all aspects of the business operation including financial records. The handling of due diligence is the most important step in the process of a successful sale. You will need to satisfy the buyer that you have all the necessary licenses and permits necessary to operate the business.

13. CONTINGENCY REMOVAL
The buyer's needs to remove all the contingencies for the agreement to become a binding offer for purchase and sale.

14. CLOSING PREPARATION
The closing documents are based on hundreds of prior transactions. They are tailored to meet the individual needs of you and your buyer at the time of the sale. They are coordinated by either an attorney or an escrow company.

15. INVENTORY
When applicable, we have professionals that will assist you with the inventory process.

16. A SUCCESSFUL SALE!
We assist with the many details required for a smooth transfer of possession. All parties then sign the final agreement, the business is transferred and funds are distributed.