Selling Your Business: The Need for Documentary Evidence
You've done the hard work and built up a business - now you're thinking of selling it. You only get to sell your business once; and a well-prepared sales document can make all the difference.
Often referred to as an information or sales memorandum, it's designed to do just as it suggests: sell your business. In essence, you need to view your sales document as a business plan, but in reverse. Preparing it can be one of the most time-consuming parts of the sales process, but this document is often the only way for a potential purchaser to judge whether to proceed to the negotiation stage.
Yvonne McDougall, director of corporate finance at Deloitte & Touche, offers advice: 'You need to highlight salient points and cut out the waffle - it saves a lot of time. Outline the unique selling point of the company product or service, and include information on the quality of management, company track-record, financial history, markets, customers and suppliers. Outlining future prospects is also a good idea.' The content of your sales document will depend on whether you are considering a trade sale (approaching a business of a similar nature) or a sale to institutional investors (such as private equity providers), with or without management involvement. With a trade sale, it's not necessary......
The remainder of this article can be read on our members section
Other topics covered in this article
Sales Document - what to include
How to prepare for due diligence
Advice from Industry experts
Common mistakes
This thriving company, specialising in yoga equipment and wellness products, offers a unique opportunity with its extensive stock, experienced team, and potential for growth through innovative marketing strategies.
This well-established business, a market leader in tube manipulation and welding services, presents a unique opportunity with a loyal client base across the UK and international markets.
A well-established glazing and glass business located on a business park in Derbyshire offers solid partnerships with local businesses and the council.
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.