Engagement letter and process planning
The process of selling a business starts here. Firstly, we equip ourselves with your company's vision and philosophy. We will try to understand your company to the last detail which will help us in selecting the most suitable buyers. Once we have taken the time to discuss your plans, we will present you with a detailed proposal and sign the engagement letter.
Business Valuation can be confusing as there are a large variety of techniques and approaches used to value a business. Largely, the process and end result can come down to a matter of expertise and experience on the part of the valuer and can ultimately depend upon which valuation methodology the valuer uses.
The most commonly used approaches are
1) The Market Data Approach
2) The Asset approach
3) Future Maintainable Earnings approach
The Information Memorandum
We will start preparing an ‘Information Memorandum’ which gives the prospective buyer a view of your company. Depending on the type of business and or at the seller’s discretion, we will advertise your business anonymously, any people that request a copy of the information memorandum will be required to sign a confidentiality agreement, this will help protect any sensitive information on financials and staff members.
Finding suitable buyers for your company
Morgan Business Sales have a large database of potential buyers. Once your business is ready to be listed, we will send our contacts an email with a link to your business advert on our website ( keeping in mind you have the option to have your business listed anonymously) Once interest is shown from a potential buyer, we will ask them to sign a Confidentiality Agreement, once this has been signed, we will send you a list of the people that are interested in viewing more information on your business. Only after you have approved this list we will send them your detailed Information Memorandum.
Due diligence is done by the buyer or by external accountants and or due diligence experts working on behalf of the buyer. We can assist in the due diligence process to ensure all required documents (the due diligence checklist) are prepared on time, so the process can run smoothly. Due diligence is executed on financial, legal and other business areas. If you require any help with legal or financial help during this process, we have leading market experts that we work closely with to recommend to you.
In the final phase, the contract will be drawn up by an external legal party. Normally, it is the responsibility of the buyer to do this. We work closely together with your (business owner) legal counsel to ensure the contract is appropriate for the sellers.