The Business Sale & Purchase Agreement
As a business broker it is my goal to educate potential vendors with all the information free of charge. Before you start the sales process it would be good to understand what you are getting yourself into.
If you are looking to purchase a Sale & Purchase Agreement for Business I will need to refer you to the website of the Auckland District Law Society Incorporated. They sell the agreements on their website for $69.50 to members of the public.
Unfortunately, due to copyright I can’t provide you with a copy of the general Terms & Conditions of the Sale & Purchase Agreement. If you would want to discuss specific T’s & C’s you are welcome to contact me.
Authority to Act
A copy of the listing agreement (Authority to Act) is provided purely to give you an understanding of the complete process. To be able to give you the best outcome possible we need to be in control of the process. Therefore we can ONLY work on the basis of a Sole Agency Agreement. This is a team effort from you and us together.
having multiple agencies working on your behalf will only create competition where most agents will bring you ANY (low) offer as they work on a commission basis and no sale = no money. Therefore it will only drive the price down, rather than UP.
Our terms should not be altered and is intellectual property of Link Business Brokering Limited.
Sample Business Appraisal Value
This is a business appraisal valuation done by our in-house system at Link. It is indicative and doesn’t consider external factors like location, value of IP, term of the lease etc.
Each valuation should be looked at on a case by case basis. Some businesses are better than average and some are worse. Understanding the knowledge behind the technology is imperative. We can explain the factors of influence in your industry.
Add Backs from P&L
Most businesses have expenses that are personal or one-off expenses that a new owner does not have. This list is to identify how many expenses could be added back to the bottom line, increasing the profits and therefore the valuation of your business.
If you are not sure what expenses you could add back, you can contact us today.
Due Diligence Checklist
The Due Diligence is a process whereby the purchaser will do ‘a health-check’ on your business, ensuring it actually performs as well as we said it is performing. It is important you understand what they will be looking for and why. This is an indicative list and some advisers (usually accountants and lawyers on the purchasers side) would require a lot more than just this checklist. See if you can do a Due Diligence on your business and, if you would be selling now, what shortcomings can you find?
Planning to Sell Checklist
This website is all about guiding you towards the best outcome possible. The first step is probably this checklist, to see how far you are in the process.
If you are a little overwhelmed by this stage, call us. We will show you the easiest way. You are not the only one…
Content of Information Memorandum
The Information Memorandum is an important part in the sales process. It gives people an understanding of how your business operates, and more importantly to see if the purchaser can see themselves running this business. There is quite some work going into writing a good memorandum.
Usually I draft the first copy, get your input and then we finalise the document with your approval. This is an indicative list of information that could be found in an Information Memorandum.
Financial Performance Indicators
These are KPI’s that every smart business purchaser will look at. If you don’t know how to even start to understand these KPI’s, you are not alone. Do a financial health check and see if your business is performing as you thought it did, or should. You possibly find some inefficiencies that could be solved quite easily, talking to the right people.
How Ready Are you to Sell your Business – test
Take this test to see if your business is ready to sell or if you would have to work on different areas to make is more salable. Give us a call if you get stuck. We are happy to help! And remember; we will never charge you for our advice!