Seven Selling Steps

davidsonashe was founded in 1996 as an affiliate member of the Business Brokers Network of more than 350 affiliated business intermediaries; business brokerage and consulting firms located across the United States and Canada.

Inital Valuation

In our view, the value of a small privately held business is typically that amount which is equal to the net value of its balance sheet plus the value of its goodwill.

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Confidential Presentation

Eventually of course, if, when and as both parties agree that a good business fit does seem to exist, then business identity, introduction and other disclosures will be necessary to the progression and completion of a sale.

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The Right Buyer

And in our experience selling small businesses, the right buyers have almost exclusively been total strangers to the business.

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Offer to Purchase

The Offer to Purchase should include the value of and the valuation basis of the assets included. In a share sale, assets and liabilities included will typically be valued at balance sheet or book value, while in an asset sale, maybe at appraised value, or fair market value, or simply at agreed value.

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Due Diligence

The diligence period and diligence process should be defined and scheduled by the Offer to Purchase. The ‘subject to diligence’ clauses should contain an expiration date, after which, if not first satisfied and removed by the beneficial party, the offer or acceptance may be withdrawn by the other party without penalty.

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Final Valuation

We have suggested earlier that the business-selling process begin with an initial valuation based on latest and most complete financials available at the time.

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Close of Sale

For reasons described below, we recommend closing documents be prepared by a lawyer neutral to both buyer and seller.

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7 Selling Steps

About Us

davidsonashe was founded in 1996 as an affiliate member of the Business Brokers Network of more than 350 affiliated business intermediaries; business brokerage and consulting firms located across the United States and Canada. Locally, we have offices in Langley, BC and Lynden, WA and have been intermediaries instrumental in the sale of companies in northwest Washington and the British Columbia lower mainland since 1996.

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