Business Sale Time Line

Here are the steps and documents necessary from the time you are “thinking” of buying or selling a business until the time of settlement and take over.

The average time frame is 12 weeks but some list and settle within 2 weeks, while others can take quite a few months.

• Decision to sell
  
• Collect necessary financial figures (3 years) from Accountant, full copy of lease of premises, taxation implications (such as capital gains tax on Goodwill and value of Fixtures, Fittings and Chattels

• Interview with Broker who appraises the business and after financial adjustments suggests a sale price
  
• Signing of Agency Agreement with the Broker to sell the business
  
• Advertising plan discussed
  
• Full “Ravens Report” on the business prepared by the broker and signed off by the vendor.
  
• Advertising agreed and commences
  
• Buyers contacted by personal approach, email, website advertising, mail, facsimile, print media and from the Ravens database of hundreds of registered business buyers. A Raven’s ‘Particular Sheet’ which is a brief Summary of the business is sent to selected potential buyers from the Raven’s data base. The ‘Particular Sheet’ does not give the name or address of the business
  
• A list of potential buyers contacted by Raven’s is sent to the vendor
  
• Confidentiality Agreements signed by interested buyers and forwarded to the broker
  
• A full ‘Raven’s Report’ is emailed to persons who have signed Confidentiality Agreements
  
• Screening of buyers by broker who checks their credentials, ability to finance/obtain finance for the sale
  
• Numerous buyer enquiries answered by the broker
  
• Offers obtained
  
• Broker presents a ‘short list’ of offers to the vendor by signed ‘Offer and Acceptance’ (O & A) forms
  
• Vendor chooses one offer and counter-signs the Offer and Acceptance (O & A) form, which then becomes the basis of the ‘Contract for Sale’. The “O & A” is not a legally binding document so other buyers can submit betters offers for consideration until a legal contract has been signed.
  
• Contract of Sale signed by Vendor and Buyer. These are usually subject to a number of conditions such as “due diligence on the figures, finance, lease of premises” etc
  
• Stocktake done the day before settlement
  
• Pay out of sale price and takeover by buyer
  

Raven's Business Services experienced consultants

are happy to discuss any further queries you may have.

Phone our FREECALL number 1800 670 440

or email us at info@ravens.com.au