Important steps in the sale of a business – Truforte
Valuation and meeting with potential buyers
Valuation is one of the key processes of a business sale that allows you to know how much the company is worth and the information obtained used to start negotiations. It is essential for the sale process, since an average or balance can be made between the value that shareholders expect to receive and the price that the investor or buyer is willing to pay.
It is also important to know what the objectives of each partner are and if they will be met when the sale of the company is made. In turn, it is necessary to understand that there may be conflicts of interest between the owners and see how to solve them before starting the sale process.
The valuation of a company can be somewhat complicated to define by the partners themselves, since in many cases emotional attachment to the business is involved. For this reason, it is very important to hire a suitable person or company outside the company to carry out your appraisal.
Once we have the valuation, we move on to a sub-phase: looking for investors. Here it is recommended to have advisers who have a large network of contacts and a team that is in constant communication with potential buyers.
Negotiation and due diligence
This phase can be one of the most exhausting and time-consuming. The negotiation sometimes does not conform to all parties, and therefore it is extended. There are different degrees of negotiation, and based on them access to confidential is allowed so that the interested party can make a decision. When it is time for the signing of the letter of intent, the buyer who is closest to the appraisal agrees to initiate more serious negotiations.
Due diligence is a very sensitive part of the process where all company documentation is checked. Possible management irregularities must be corrected and the documents presented in an orderly and complete manner.
To learn more, get in touch with Truforte. They are a trusted business brokerage based in Florida that can accompany you at every stage of the company sale process.