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GETTING YOUR BUSINESS READY FOR SALE

 

Are You Ready to Retire?

Retirement Budgeting

Sources of Retirement Income

Tax-Deferred Savings Vehicles

Estate Planning

Selling Your Business

Getting Your Business Ready for Sale

Working With a Business Broker

Closing-Your-Business Sale

More Resources: Retirement Planning
  Preparing a Selling Memorandum to Market Your Business

A selling memorandum essentially is a business plan in reverse; it summarizes the important financial and market information about your company and puts it in a positive light. A selling memorandum should include:
  • An executive summary of the key selling points of the company
  • An explanation of why you want to sell
  • A summary of your company’s history, structure, and method of operations
  • An overview of your market and what market share you have
  • A description of your staff and the company’s physical assets
  • Historic and projected financial statements (at least three years of each)
  • The asking price and basic terms you want

Adapted fromCommerce Clearing House’s Business Owner’s Toolkit

TIP: Don’t forget that the sales memorandum is a marketing piece. Be sure to explain to prospective buyers why your company presents a great opportunity.

TIP: Don’t show your selling memorandum to anyone who has not signed a confidentiality agreement. That includes your business broker (who may help create it), your attorney, and your accountant.

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