Survey your company from the buyer’s perspective. Does it look sharp? Are the systems and procedures in place and documented?
Are the financials up to date and optimal? Analyze the financials and present them as a company run by professional management. (Most private company financials are organized so as to reduce income taxes.)
Prepare an offering document that tells the good and bad plus the future (We call it a Descriptive Report).
The buyer will prepare a business plan, always. If yours isn’t up to date, get it up to date. If you don’t have one, prepare one. A business plan is a document for selling the future; it is the basis of your Descriptive Report and a way to enhance value.
Develop your marketing plan. Decide the categories of buyer candidates that would be best to contact; set qualification criteria; do the research to identify the buyer candidates. Decide on the advertising channels. Set a schedule and responsibilities for each activity. (All of these activities are done by your intermediary with your approval.)
Documents required are:
· Descriptive Report, a comprehensive presentation of your business, its past accomplishments and future opportunities.
· Profile, a confidential, one-page description of the business without identifying the company.
· Confidentiality Agreement, for potential buyers to sign prior to disclosing the company name and receiving the Descriptive Report.
· Solicitation Letter. The initial buyer contact letter.
· Database of all potential buyer names and addresses.
· Ad copy for various advertisements.