5 SIMPLE STEPS
Selling or listing your business is something we take seriously. Our goal is always to ensure that you are protected as a seller and your information is carefully managed. We have a set of measures in place to ensure that you are not bombarded by unqualified buyers, your employees don’t get wind of your intent to sell your privacy and confidentiality is protected. As part of our process, we have a system of Non-Disclosure Agreements (NDAs) in place to legally bind us to protect your trade secrets and critical information of the business. Similarly, interested buyers are asked to sign a NDA to ensure that they are legally obligated to do the same.
Step 1: Take advantage of some Free Consultations
Sign the NDA, Once the NDA is signed, you can be rest assured that anything discussed will remain confidential. We are here to answer all your questions and to guide you through the process of listing and selling your business. You can find our NDA HERE
Step 2: Document Checklist
In order for us to advise you on the best value of your business, some documents are required – these will assist us in the valuation process. The following will be required:
- Seller’s Questionnaire – This will help us under you and your business better
- Recent Financial Statements (Last 3-5 Years)
- Executed Lease
- Articles of Incorporation (If Applicable)
- List of Equipment (To be Included and Excluded in the Sale)
In addition to the required documents, we use several other factors to determine value. We look at what’s happening in the business itself plus what’s happening in the neighbourhood and industry. There are many other factors as well but one thing is for sure……. you will get the best value for your business
Step 3: Agreement on Price Range
A team analysts will review the submitted documents and prepare a Normalized Income Statement. This statement involves adjusting non-recurring expenses or revenues so that it only reflects a company’s usual transactions. Financial statements often contain expenses that do not constitute the normal business operations, and that may otherwise hurt the company’s earnings and value of their business. Once the Normalized Income Statement is prepared, a listing price can be determined and agreed upon.
Once listing price is agreed upon, you have the option to allow us to list the business for sale. Should you decide to have us list it, you will enter into an official relationship by signing the Listing Agreement. This agreement describes the legal business relationship the Seller will be entering into with Ontario Business Sales along with the relevant terms and conditions.
Step 4: Marketing and Showcasing
Once you have signed the listing agreement, we will market the business to our buyer database as well as publish the listing on a few select sites to attract buyers. We handle all of the print materials and graphic designs for all the publications and provide them to you as proof and for sign-off. We will screen all potential buyers and ensure that they sign a NDA. You will have an opportunity to meet all buyer who have committed to entering into negotiations to buy the business. This means that the buyer has signed the NDA, has made an offer to purchase and has made a deposit of at least 10% of the offer price.
Step 5: Due Diligence & Closing
All offers with Deposit are presented to the seller to choose from, you have the final say on who buys your business. Once an offer is accepted, the buyer enters into the Due Diligence stage. In this stage you may be asked for additional documents so that the buyer, his/her accountant and lawyer can validate the financial performance of the business for the past 3 years, the legitimacy of the business from a legal set of lenses. It is here that your lawyer and the buyer’s lawyer begin the discussions on transfer of ownership and the legal process. Once all conditions of the Due Diligence process are waived the closing stage begins. It is here, a date of transfer of ownership and balance of funds are set. We will assist and guide you through every step of the way.
GET STARTED ON YOUR FREE VALUATION
Start your FREE Valuation Now
The best way to get started is to fill out some preliminary information in the online Valuation Tool. We will work with you to determine the best Value for your business.