A SIMPLE INTERNET SEARCH produces an outline that sums up what has NOT been done prior to promoting the sale of our Water Company. Below is a clear outline on some of the tasks a seller might perform for the best outcome when selling a business. 

VOTE “NO” to selling the water company at this time.
If we’re going to do it, let’s make the most of it.

SUMMARY: To sell a business, first, prepare it by getting a valuation, organizing your financials, and streamlining operations to increase its value. Then, market the business and screen potential buyers, managing inquiries and negotiations. Finally, finalize the deal by securing an offer with a letter of intent, navigating due diligence, and signing the final purchase agreement. 

1. PREPARE YOUR BUSINESS

• • Get a valuation: Obtain a professional valuation to determine an accurate asking price.

• • Organize financials: Gather tax returns, bank statements, and other financial records from the past 3-4 years
    to present a clear financial picture to buyers.

• • Streamline operations: Document all processes and systems to show they are efficient and not overly dependent on the owner.

• • Assemble a team: Build a team of professionals, including an attorney, accountant, and business broker, to guide you through the process.

• • Review and address risks: Identify and mitigate risks like customer or employee concentration, which can deter buyers. 

2. MARKET YOUR BUSINESS and FIND BUYERS 

• • Determine your ideal buyer: Decide if you are selling to an individual, a competitor, or a private equity firm, and tailor your strategy to attract them.

• • Market the business: Use your broker, social media, industry contacts, or local advertising to find potential buyers.

• • Screen potential buyers: Manage initial inquiries, often received via email, and request they sign a non-disclosure agreement (NDA) before sharing confidential information like the Confidential Information Memorandum (CIM). 

3. Negotiate and finalize the deal 

• • Close the sale: After due diligence is complete and the buyer is satisfied, have an attorney draft a legally binding purchase agreement to finalize the sale and transfer ownership.

• • Negotiate offers: Once you have a financially qualified buyer, negotiate the terms and have them provide a Letter of Intent (LOI).

  • Manage due diligence: Be prepared to provide thorough access to your business’s financial, legal, and operational details for a comprehensive review by the buyer.