7

Steps to Selling Your Business

In order to make an efficient sale of your business, there is a certain procedure to follow. Lucky for you, EBIT Associates will be there every step of the way to ensure a top-dollar sale to buyers you are comfortable with. We have compiled seven steps to selling your business to make the process easier.

This process is not short. The due diligence period alone can take up to 90 days. Please understand this process requires much planning and commitment.

The clients of EBIT Associates have COMPLETE CONTROL over the entire selling process. Our associates are simply there to help facilitate the process.

The motivation of the seller is what will determine the success and pace of the sale. When selling a business, you really get out what you put in.

1

No Obligation Consultation

EBIT Associates is proud to offer no-obligation appointments with you to simply discuss the preliminary steps of selling your business. These appointments are free of cost, and completely confidential. Establishing your trust in our expertise is a high priority, and we understand the uncertainty that is associated in selling your business.

Understand your Options

The selling of your business requires an extreme commitment of time and attention. When thinking about selling a business, it is important to acquire the assistance of professional investment bankers, such as the team at EBIT Associates. Involving EBIT within the sale of your business will bring you the right buyers, attract multiple bids, and help you understand all of your options.

Getting the Right Price

Involving EBIT Associates in the sale of your business from the very beginning of the process will ensure that you are getting the right price for your business, attracting all possible bids, and fully understanding the entire procedure. To learn more, click here.

Competitive Market

EBIT Associates will assist you in the sale of your business every step of the way – from the very second you decide to sell your business, all the way through to the final closing of the deal. With the process being so complicated, and the market being so competitive, you will not regret hiring our professional investment bankers.

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2

Planning Your Sale

Similar to the plan you created when starting your business, the selling your business also requires a plan. During this second step of the process is when a professional investment banker from EBIT Associates will meet with you for an initial meeting. Of course, this meeting is free of charge. At EBIT, we understand the uncertainty and fears involved in selling your business. It is not uncommon that a client changes his or her mind about selling their business during this step. While this decision is entirely acceptable and understandable, it also important to know that the assistance of EBIT Associates will always be available to you.

The initial meeting between one of our representatives and you will be all about discussing your business and learning about the selling process. Getting familiar with each other and establishing trust in our expertise is extremely important. Our investment bankers are open to any questions about our process, experience, past transactions, etc. In terms of your business, we will discuss everything from the value drivers, to what really makes your business unique.

It is always a good idea to look at the sale of your business from the point of view of the buyer. It is important to scrutinize the finest details of your business and answer any of the questions that a potential buyer may have. Anything that may impede the sale, such as impact of the taxation proceeds, should also be examined.

In short, this initial meeting is really conducted to simply prepare the business, and the business owners to be ready to sell.

3

Business Valuation

EBIT Associates provides independent and objective valuation advisory services, which range from merger and acquisition transactions to asset appraisal and strategic planning.

The company valuation process is made simple with EBIT. After gaining a full understanding of your requirements, all of the information we have gathered through management questionnaires, document request lists, and facility tours will be efficiently put to use. There are several factors EBIT considers when reviewing your company’s data, such as economic factors, industry trends and influences, potential risk factors, and recent relevant transactions. Only after all of this information has been collected, researched, and reviewed with the client, a final valuation report is issued.

EBIT has developed a three-stage process to effectively calculate the value of your business. To check out the thorough steps our professionals will take, check out our “Valuations” page here.

Within this third step of selling your business, it is crucial to the investment bankers at EBIT Associates that our clients feel comfortable. The business, financial data, and documents we discuss and develop are all confidential. The privacy and respect each business owner deserve is our highest priority when determining the value of your business.

4

Engagement Agreement

This agreement gives EBIT the rights to represent your business during the sale. Factors such as current market conditions and the financial state of your business will be discussed with potential buyers.

After determining the value of your business, the investment bankers of EBIT Associates will be ready to represent your business within the sale. Our professionals will develop an engagement agreement that is unique to every business in order to ensure the highest quality service within the selling process. Our clients are not required to sign our engagement agreement within any deadline. You will be provided with as much time as you and your board require to look over the agreement, discuss personal ideas, etc. Our team is open to any questions and clarifications you may ask for.

In general, all this engagement agreement will do is give EBIT Associates the right to represent your business throughout the sale. Please note that a full financial picture is required for this step of our process.

While the investment bankers of EBIT Associates are representing your business, they will be discussing the current market conditions, the financials and history of your company, and the state of the industry of your business. As with the valuations, confidentiality is a top priority within this step. Our investment bankers will only discuss all of this information with qualified buyers.

Once an Engagement Agreement is completed, the next step is Marketing the Sale of your business.

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Marketing the Sale

Unlike many other business brokerage firms, EBIT Associates goes above and beyond simply listing the sale of your business on our website. A unique marketing package is assembled with all of the important information necessary for potential buyers to know and is then distributed through the utilization of a plethora of marketing tactics. Of course, confidentiality is key during this step.

The professionals at EBIT Associates are pleased to offer complete marketing services for the sale of your business. The marketing service and quality that EBIT Associates provides is unheard of within our market, leading to the sale of over 75% of our client companies at a higher price than the investment banker community.

EBIT Associates will create a unique marketing package for your company. This package includes important information about your company and will be offered to any potential buyers. EBIT’s unique and complete marketing package includes information about your business such as:

Your business’ top assets

What makes your business stand out

Financial documentation

Locations, lease information, and assets

Pictures of your locations and products

Again, confidentiality is key. The investment bankers of EBIT Associates understand the importance of not disclosing the specific name and locations of your business. EBIT Associates goes to great lengths to make sure your marketing package will reach potential buyers. We utilize our own in-house database of over 100,000 buyers and growing, internet marketing tactics, direct mail pieces, telemarketing, and newsletters. The blind profile of your business will be posted on several top merger and acquisition sites, as well as being sent out through EBIT’s vast database.

Needless to say, the sale of your business will not go unheard of. All of EBIT’s dedication to a thorough marketing plan will attract buyers, which leads us to the next step in the process in Finding a Buyer.

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Finding a Buyer

An effective pre-screening process is ran to sort out the most high quality buyers for your business. Several more meetings with the potential buyers will take place between you and an EBIT investment banker. EBIT will assist you in analyzing the pros and cons of each potential buyer.

Once several buyers have been found, EBIT Associates will issue an effective pre-screening process. Our system is efficiently designed to eliminate any potential buyers who are not serious about buying your business, or do not have the financial stability to purchase a business. Our screening process is proven to leave our clients with only legitimate buyers and offers.

At this point, it is time for some more meetings. An investment banker from EBIT Associates will meet with you and each potential buyer to learn more about each other’s specific interests and the sale. Our professionals are open to any questions at this time and are present in order to ensure a smooth meeting. The selling process can be stressful, and our investment bankers are responsible for making your life during the sale as hassle-free as possible.

After the meetings, the client will have the opportunity to decide which buyers seem like a good fit, and which buyers do not. Our EBIT professionals will help the client to evaluate the pros and cons of each offer.

Once a buyer has been found, the next step is Due Diligence and Closing the Deal.

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Due Diligence and Closing

After the presentation of a letter of intent and the confirmation by yourself, a due diligence period will take place. This time allows for the buyer to examine the details of the sale, collect forms, write contracts, etc. At the commencement of this period, yourself, along with the assistance of an EBIT professional will guide you through the final financial and legal sectors of the closing process. To Learn more, click here.

A letter of intent will be presented by each potential buyer. Within this letter, factors such as payment terms, their purchase price, required employment agreements, training and transition periods, and other conditions will be explained. The investment bankers at EBIT will be available to explain each section of the buyer’s letter of intent. After a full understanding is established, our client can either accept or decline the offer.

After an offer is accepted, a due diligence period will take place. This time allows for the buyer to examine the deal and make any final decisions. Paper work, such as copies of leases, bank statements, and contracts of suppliers and customers, will also be collected and sorted out during this time. This period is simply for the buyer to finalize their end of the acquisition. During this time, the EBIT Associates team will be working with accountants, attorneys and lenders to ensure a smooth process.

At the end of the due diligence period, EBIT will assist you with both legal and financial guidance through the final closing process. Paperwork, such as contracts, tax forms, and the collection of all funds will be supervised by EBIT Associates. After this process is complete, your sale is officially closed. Congratulations!

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LETTER OF INTENT

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Complimentary Seller’s Guide

WHAT’S IN THE GUIDE?

This 21 page guide will help you work through your exit strategy plan and answer many of the questions that will arise as you scrutinize your business from the point of view of the buyer.

Are you ready to exit?
Why use an investment banker?
What is the selling process?
What can you do to maximize the value of your business?
What things can block a sale?