12 Dec
Business Sales. Preselling Preparation
Posted in Business Management, Financial Management by adminAfter that is defined the final price of business which serves as a starting point at negotiation with the potential buyer.
Following stage of preselling preparation of business is scheduling of sale of ready business, during which working out the circle of potential buyers is defined (possibility of sale of business to partners, competitors, suppliers, etc.) and ways of their attraction is considered (information placings in printing editions, on TV, on the Internet and the item t.) at preservation of the necessary confidentiality which infringement can negatively affect current activity of the ready business exposed on sale.
In the course of preparation of presentation materials the investment memorandum giving to the potential buyer the exhaustive information on a current condition of ready business exposed on sale and prospects of its development is made.
The investment memorandum includes the detailed general description of business (a field of activity, products or services, business dealing principles, a market share, etc.), reflects the analysis of the basic financial indicators (a gain, the cost price, net profit, etc., their dynamics for the last years) and the carried out analysis of the market (capacity, the characteristic of demand, a competition, the SWOT-analysis, etc.). Besides, in the investment memorandum the substantiation of the price of the business, received should contain during carrying out of its estimation, the conclusion of legal and auditor checks, the description of prospects of development of business in the future.
Sale of ready business comes to the end with a stage of carrying out of preselling preparation of business which consists in formation of the full, legally worked package of documents of a package of documents for direct realization of sale of business.
Thus, preselling preparation includes carrying out of legal examination of constituent documents and contractual base, auditor check of the financial reporting, the analysis of a financial condition and business estimation of cost.
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