The Ownership Transfer Process
Selling a business can be a long and complex process and the missteps costly. To complete a successful transaction, it is important to understand the different stages of the process from the decision to sell to the post-closing issues:

THE DECISION TO SELL. Selling is the most common exit strategy to a business owner. It can be the most rewarding too. Take the time to prepare the business and yourself for it.

ENGAGING A PROFESSIONAL BROKER. Make sure you seek professional assistance from someone that you feel comfortable working with. Credentials are very important, but people skills are just as important. Your broker will most likely be the buyer’s first contact with, and impression of, your business.

PREPARING THE BUSINESS FOR SALE. Compiling and recasting financial statements, valuing the business, writing a well organized and effective business description, documenting industry and location trends, producing a professional “book” for the business are only some of the things required before a business can be presented to a buyer.

MARKETING THE LISTING. NEXXO utilizes the industry’s most reliable media to promote a business listing effectively yet confidentially. However, the most effective way to market a listing remains having access to a pool of committed and active buyers who appreciate professionalism and value integrity in a broker.

QUALIFYING THE BUYERS. Not all buyers are good match to all businesses. Qualifying a buyer can be time consuming but it is necessary to determine the potential buyer’s financial qualifications as well as his/her interests and skills. All buyers sign a Non-Disclosure Agreement prior to receiving any confidential information.

PRESENTING THE BUSINESS. Today’s buyers are sophisticated business people who have several investment options available at any given time. How your business presentation makes an impression on them will determine how far the go in the process. From the “book” they receive upon signing a non-disclosure agreement, to the actual tour of the business, all must be orchestrated to result in a memorable experience.

MEDIATING IN THE NEGOTIATIONS. Talk about a delicate issue! A professional business intermediary will effectively convey the parties’ messages back and forth thereby eliminating the personal “noise” that generally surrounds, and usually distorts, most negotiations. Mediating a negotiation is a delicate effort that must be conducted in a careful and thoughtful manner.

ASSISTING IN STRUCTURING A DEAL. The question is not only how much will the buyer pay, but how does the seller prefer to get paid. For a number of reasons, including tax considerations, a deal may be structured to include some seller financing, employment contract, and/or consulting/management agreements. We will assist in determining the most convenient structure for each transaction.

BRINGING ASSOCIATES TO THE TABLE. NEXXO has a network of readily available, price conscious professionals with business transfer experience including attorneys, lenders, tax specialists, closing agents, title companies, etc.

LEADING THE PROCESS TO A SMOOTH CLOSING.  A deal is not closed until it is funded. The weeks prior to closing are perhaps the most tense. In addition to the common anxiety and impatience of both buyer and seller, there are the standard pre-closing documentation requirements with their tedious “final stretch” paperwork. Preparing for this stage will assure a smoother more congenial closing.

POST-CLOSING ISSUES. Depending on the transaction there may still exist some relationship between buyer and seller after the sale has been completed. After-sale employment contracts, consulting agreements, seller notes, and payable/receivable management are among the most common post-closing issues, which the parties need to carefully consider and negotiate early in the process.