Selling a Business

Eventually there comes a day when every business owner begins to think about succession planning. You ask yourself, are you going to pass the business on to your children or other family members? Do you sell to a key employee? Or an employee group? Will you sell to someone you don't know?

How do I sell my business?

Getting top dollar for all your hard work is the main goal. This means finding the right buyer at the right time in the right circumstances who is ready to make the right deal.

We specialize in selling privately owned lower mid-sized companies in the $1-75 million dollar revenue range. Our qualified business brokers and mergers and acquisition team focus on helping our clients maximize the value of their business while negotiating the most favorable deal possible.

Start with a Plan

Just like the business plan you created when you started your business, putting your business for sale also requires a plan. Working through the planning process will help you set out the steps to follow, and answer many of the questions that will arise as you scrutinize your business from the point of view of the buyer.

A qualified Mergers and Acquisitions team works together with you to determine the fair market value of your business. Together you examine any issues which may impede a sale, and look into crucial questions such as the impact of taxation on the proceeds, review what measures need to be taken to ensure confidentiality of financial data and determine how you can best market your business without alerting employees, vendors and competitors.

Business Valuation

EBIT has developed a comprehensive process based on a Confidential Memorandum which examines all the factors involved in determining your company's valuation.

Created in three sections, the confidential memorandum is a complete package of all the information necessary for the buyer to make an informed decision about buying a business.

Section one consists of general business information including the purpose of the business, marketing strategy, industry background, employees and facilities.

Section two is financial disclosure. This covers three years of financial statements including balance sheets, profit and loss statements and tax and financial data.

The final section provides justification for the business' worth. This section may be as large as a comprehensive evaluation or as short as a single page showing cash flow minus debt repayment, in order to illustrate to the new owners the company's ability to earn income and return on investment.

Would you value these two companies the same?

Additional Information:

• Beware of the Tire Kicker
• Alternative Liquidity for Sellers
• FREE Sellers Guide Download