A Business Sale, the Process

Every prospective sale will consist of five principal phases:

      a) Evaluation

      b) Preparation

      c) Search and Verification of Buyers

      d) Agreement of Terms

      e) Completing the Sale

At no time throughout the sales process will your identity or any information be made known without your authority.

Evaluation

Following your initial contact a meeting will be arranged at a mutually convenient time and location.

This initial meeting would be both FREE and without obligation to proceed.

The objective of the initial meeting would be to assess the potential for a sale and exchanging of information; in addition, answering any questions you may have as to the process of selling your business.

Following this initial meeting, if you have decided to proceed, the terms of the project will be agreed in writing.

Preparation

This phase would consist of the following two exercises:

      a) Pre Marketing Due Diligence

      b) Development of a Marketing Plan

Pre Marketing Due Diligence

This process will mirror the exercise that will be carried out by a potential purchaser’s staff and/or external advisors, when reviewing your business both operationally as well as financially; prior to finalisation of the purchase agreement. The aim is to produce a report that will form a basis for the Memorandum of Sale and also highlight any matters that would need addressing to remove any negative impact on the value of the Sale and optimise its achievement.

You will receive the report for review prior to your next meeting with Trade Transfer to discuss the content, develop a marketing strategy and the target price of the sale.

Developing the Marketing Plan

Following the review of the Pre Marketing Due Diligence Report, and based on the discussion at the initial meeting the following two documents will be developed:

Trade Transfer will present the initial drafts of these documents at an agreed time and place. Following this discussion any amendments will be sent to you for your review and approval.

There will be two versions of the Memorandum, an edited version that would maintain the level of confidentiality you have authorised, to be used to gain potential interest from buyers, and a second fuller version that you would have authorised to be sent to organisations that have expressed interest in evaluating further the potential purchase of your business.

At no time will any information or your identity be made known without your authority.

Search and Verification of Potential Buyers

Following the agreement of the Marketing Plan, potential buyers will be researched, taking into account any opinion or request you may have made as to the profile of an acceptable buyer.

Each potential buyer that expresses such interest would be requested to sign a confidentiality agreement before receiving the full memorandum of sale.

Following your approval of one or more of the organisations returning a confidentiality agreement, Trade Transfer will meet with them to discuss the merits of your business and its benefits that they could derive. At this stage the degree of confidentiality is still at your sole discretion.
 
After reviewing with you the outcome of the initial meetings Trade Transfer had with potential buyers, a meeting chaired by Trade Transfer will be arranged at a location and time convenient to you with those you have chosen to enter into direct negotiations with. These meetings will enable you to gauge the strength of their interest and provide any further information about your business that you wish to impart

Agreement of Terms

Following your meetings with potential buyers, you will be informed immediately of any offers. Offers at this stage will be subject to contract and the potential purchaser’s own due diligence. You may accept an offer, or alternatively seek amendments to the terms of the offer. At this stage the aim is to have received more than one offer, enabling negotiations that would maximise the value of the sale.

Following the review of the offers and any subsequent negotiations, once you have selected the most acceptable offer Trade Transfer will draft a ‘Heads of Terms’ agreement which outlines the mutually agreeable structure of the deal in plain English.

Once the ‘Heads of Terms’ has been signed by the selected buyer, copies of this document would be sent to you to give to your solicitor. Most purchasers will have their solicitors produce the contract for the purchase of your business. Your solicitor will require a copy of this document whether he is to draw up the contract or for his initial review of any contract presented to him

Completing the Sale

Following the signing of the Head of Terms, the potential buyer will instruct his staff and/or external advisors to perform the Due Diligence exercise. This would follow the procedure performed by Trade Transfer prior to the marketing of your business. The preparation that followed the exercise performed by Trade Transfer would ensure the buyer’s due diligence will be completed in a satisfactory and speedy manner.

Trade Transfer will maintain close and regular liaison with yourself, those acting on your behalf and on the buyer’s; to ensure the deal remains on course.

Finally there is the Completion Meeting, at an agreed time and location when both parties gather to sign the final contract. It is not uncommon for final amendments to be discussed at this meeting. It is therefore important that you should ensure you have support other than just your solicitor. Trade Transfer will at your request attend the meeting.

Once agreement between the two parties has been established, the contract can be signed, funds transferred and the business passes to the purchaser. WELL DONE!, your goal has been achieved and you now can enjoy the reward you have striven for.  

Remember, Trade Transfer’s motto is ‘With you every step of the way'