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I just listed my business-I am getting requests for more information--what information should I send on these

I just listed by business on the site. I am getting e-mails that request "send me more information about this business" which seems like a fishing type question. What information would you suggest I send at this point. None of the inquiries have called for direct conversation, I do not want to share details if these are not serious buyers. Any suggestions!

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Answers (4)
William A. Price
www.growthlaw.com
Business Lawyer
DuPage County, IL

Your potential buyer needs to know what the profit potential of your business is, based on actual data. With an appropriate nondisclosure/noncircumvent agreement in place, there is nothing they should not be able to see, unless your business relies on trade secrets, instead of solid expertise in your profession and a good marketing program that has worked to build a solid set of profitable repeat customers. A business listing packet will provide a summary of profits over the last couple of years, a summary of the assets to be transferred (?real estate??client referrals if you can't sell client files??experienced and qualified staff?), copies of business tax returns, pro forma financials for year to date operations, major payment source and contracts information summaries, community and customer profiles, and anything else that would be material to the buyer's decision to purchase would all be reasonable. Paper is cheap, and buyers don't trust sellers. Talk to the buyer to see if they are licensed and otherwise financially qualified to consider a purchase, but don't worry too much about the latter. A good contract won't allow them control until they pay in full, or promise a satisfactory earn-out and show financing sufficient to cover same. Get your accountant and lawyer, or a good business broker who has helped others sell similar businesses to help you with the sales information packet, the disclosure process, and the asset or stock purchase agreement negotiations. Check comparable sales with others in your professional associations, brokers, and other market data sources, and then proceed as appropriate to realize some return from your years of work building the business.

Hope this helps,

Bill Price
wprice@growthlaw.com

Mar 26, 2013
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As a successful entrepreneur with an MBA from the countries top business school, I am specializing in preparing business for sale. I can customize answers to your questions here.
www.askjerrysomething.com

its free, answers in 24 hours

Mar 23, 2013
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The BAF Group LLC
MD

Do you do your own dental work? Then why are you trusting an amateur to do this job? Get a professional; you are obviously not equipped to represent yourself. This is not the time to be asking such fundamental questions.

Nov 13, 2012
raul victores
Coast 2 Coast Business Brokers

Use a broker in your area they can handle everything for you

Nov 13, 2012

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