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How
We Earn Our Fees
- Business Broker, holding a Real Estate Agent license
where necessary, and the Seller is educated on the
process of selling a business.
- A Representation Agreement
is filled out by the Seller's Broker & signed by
the Seller. Immediately after signing the representation
Agreement, the Seller provides
the Broker the following:
| a. |
Complete lists of all equipment and
other assets to be included or excluded in the
sale; |
| b. |
Profit and loss statements, balance sheets, and
tax returns of the Business covering the last three
years; |
| c. |
The most recent interim profit and loss statement,
balance sheet, and sales tax returns; |
| d. |
Real and personal property leases; |
| e. |
Copies of all patents, licensees, loan documents,
contracts or agreements; |
| f. |
All agreements relating to employee benefits; |
| g. |
Any environmental reports; and |
| h. |
Copies of all other documents needed to present
a fair and accurate description of the Business
to prospective buyers. |
| i. |
During the representation period, seller will
provide monthly updates of each such document during
the period of this agreement where any material
change has occurred. Seller consents to Broker
publishing, advertising or distributing information
about the Business to prospective purchasers and
to cooperating brokers, and contacting landlords
and any others regarding any of the information
about the Business. |
- Seller's Broker writes
a narrative on the Business; the Representation Agreement
is entered into the Sunbelt
proprietary database, and a Business Profile is created.
Seller's Broker introduces the Business to all of our
other brokers during weekly office meetings.
- All
other brokers match the Seller's Business Data (SBD)
against Buyers in their respective queues (Buyers
who have previously been interviewed, signed a Confidentiality
Agreement and filled out a detailed Buyer's Profile);
Seller's Broker plans an advertising strategy; and
the SBD is added
to web sites in such a manner so the general public
cannot identify the business.
- Buyers in queue and Buyers who
have responded from the advertisements will have their
backgrounds and finances
evaluated to see if they are qualified Buyers. If qualified
Buyers are interested, they will be shown a Business
Profile. If further interest is shown, the Seller's Broker
will
arrange a meeting with the Seller.
- If a Buyer wants
to make an offer at a fair price, the Buyer's Brokerwill
write the offer and secure a deposit.
- The Seller's
Broker will present all offers to the Seller.
- Seller
and Seller's Broker will review the offer and decide
whether to accept it or counter the offer. If Seller
wants to counter, they can:
| a. |
Mark up the original offer, initial
the changes and sign the offer. |
| b. |
Sign the offer; check the countero ffer box
on the offer and write-up a counteroffer. |
| c. Re-write the offer. |
- Once an offer is accepted, the Seller's Broker will
arrange a Seller/Buyer meeting where the Seller's and
Buyer's Disclosure Statement is discussed, questions
answered and the statement is signed by both parties.
- Due diligence starts once an offer is accepted and
the Seller's and Buyer's Disclosure Statement is completed.
| a. |
If the due diligence proves the Business
as represented, the Buyer signs the Conditions Removal. |
| b. |
If the due diligence did not prove the Business
as represented, either the offer can be renegotiated
or the offer will be cancelled & the Buyer's
deposit check will be returned. |
| c. |
If the due diligence did
not prove the Buyer as represented, then the offer
will be cancelled & the Buyer's deposit check
will be returned. |
- How
will purchase price be allocated?
| a. |
Good will |
| b. |
Fixtures and equipment |
| c. |
Leasehold improvements |
| d. |
Covenant not to compete |
| e. |
Licenses where applicable |
| f |
Furniture, Fixtures & Equipment |
| g. |
Inventory |
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