Quick Guide For Business Sellers

Below are details of a "Quick Guide" that business owners may use to prepare their business for sale. ABMI has been helping business owners with these details for almost 30 years. And, on most projects, ABMI works on a straight commission basis, with no advance fees needed. For a free, no- obligation consultation, call ABMI at 913-341-6300, or register with this website.

Step 1- START PLANNING NOW!

Identify your objectives
Assemble your team of advisors (CPA, Attorney, Tax Advisor, Estate Planner, Financial Planner and ABMI Business Broker)
Get your business evaluated; update every year
Report all income - business value is primarily based on documented cash generated
Make your role easily replaceable for a new owner.* Document your processes to ease the anxiety of the unknown
Diversify your customer base if more than twenty-five percent of sales come from one customer

Step 2-VALUATION

Prepare financial statements and other business information
Review the latest business evaluation and understand how operational and financial activities affect the value
The business is worth what it can produce in current cash flow and future returns to the buyer

Step 3- MARKETING

Prepare a comprehensive marketing package to present information to qualified buyers
Use various forms of advertising including local newspaper, Internet, trade publications, and direct mail
Qualify buyers by asking them questions about their interests, background, income requirements, and resources
Before providing any detailed information, have them sign a Confidentiality Agreement
Provide the marketing package and highlight the positives associated with your business

Step 4- NEGOTIATION

Negotiating could be emotional and uncomfortable -remember that price is only one component of the negotiation
Other important factors include financing terms and contingencies, which can impact the ultimate value to you
Communicate offers and counter-offers in writing
Request an earnest money deposit as a sign of buyer confidence

Step 5- DUE DILIGENCE

Allow the buyer to review documents and files to verify information you previously provided
The signed offering agreement should provide the standards for the due diligence process
Obtaining financing and an acceptable lease are two challenges a buyer typically needs to arrange

Step 6- CLOSING

Conduct an inventory immediately prior to closing
Ideally, have a qualified third-party manage the closing process
Sign all final documents including Settlement Statement, Purchase Agreement, Bill of Sale, Promissory Note and Security Agreement, if applicable; a Notary should be present to notarize all signatures
Exchange funds. As the seller, you should provide validation that all vendors are paid in full, out of the proceeds you receive from the business buyer

ABMI has been providing all the above services since 1982. And, we've brokered the sale of thousands of different businesses, of all kinds, all sizes, all prices, including managing the entire marketing, closing and due diligence process. Of course, we volunteer to also coordinate all activities with the buyer's and seller's attorneys, accountants and other advisors. And, we perform these services on most transactions on a straight commission basis, and are paid a commission by the business seller at the closing of the transaction. Yes, we accept some assignments on a fee basis, but most engagements are on a commission-only basis.

ABMI's specialty has been helping business owners in Kansas City, throughout Missouri, Kansas and the Midwestern USA. We provide free informaiton on how to sell your Kansas City business, located in either Missouri or Kansas.

To arrange a no-cost, no-obligation appointment to discuss any of these issues, you may phone ABMI at 913-341-6300 or register with this ABMI website.

6201 College Blvd., Ste 385
Overland Park, KS 66211
Phone: 913-341-6300
Fax: 913-381-5978
info@abmi.net