Selling a Business – Step 7
Due Diligence and Closing the Deal
A letter of intent will be presented by each potential buyer. Within this letter, factors such as payment terms, their purchase price, required employment agreements, training and transition periods, and other conditions will be explained. The investment bankers at EBIT will be available to explain each section of the buyer’s letter of intent. After a full understanding is established, our client can either accept or decline the offer.
After an offer is accepted, a due diligence period will take place. This time allows for the buyer to examine the deal and make any final decisions. Paper work, such as copies of leases, bank statements, and contracts of suppliers and customers, will also be collected and sorted out during this time. This period is simply for the buyer to finalize their end of the acquisition. During this time, the EBIT Associates team will be working with accountants, attorneys and lenders to ensure a smooth process.
At the end of the due diligence period, EBIT will assist you with both legal and financial guidance through the final closing process. Paperwork, such as contracts, tax forms, and the collection of all funds will be supervised by EBIT Associates. After this process is complete, your sale is officially closed. Congratulations!
Click here to go back to Step 6 – Finding a Buyer.