We at LINK, formerly Klemms understand that business owners work hard to operate and manage their business. When it is time to consider selling, it is important to handle the preparation and sale process properly to maximise the sale proceeds. LINK brokers are business sale experts with the training and knowledge to be able to sell your business to achieve maximum value. We have the experience and the right tools to professionally package and sell a business. We understand that most owners want to sell a business confidentially and your broker will utilise our proven techniques designed to sell a business while maintaining confidentiality throughout the process.
Our Process to Sell a Business:
Business Appraisal – The business sale process starts with an accurate business appraisal. Determining the fair market value for your business is crucial to the Vendor receiving the highest proceeds when selling a business. If a business value is too high potential buyers will not be interested in it, if the business value is too low the Vendor will not receive the full value they are entitled to. Our business brokers have the experience to take all relevant variables under consideration including your business’s strengths, historical financial performance, growth potential, tangible and intangible business asset value and the many factors to properly appraise a business to bring you the maximum possible sale price.
Exclusive Sales Agreement – Our clients will engage us with an Exclusive Sales Agreement that authorises LINK Business Melbourne to market your business for sale and identify qualified prospective buyers for the business. The agreement allows our brokers to discuss the business with qualified parties and to provide the business details to potential buyers. We will sell a business utilising our confidential business sale procedures unless you instruct us otherwise. We will market and sell a business in a way that will prevent employees, competitors and other third parties from knowing about the business sale, unless and until you the owner elects to disclose the information.
Marketing Program – A marketing program will be designed for your business that will include advertising using online media exposure, targeted media outlets and through our own database of qualified buyers. We will also keep in mind the level of confidentiality needed during this process to ensure the information goes only to those we want to know about the business sale.
Qualifying Potential Buyers – Our business brokers will conduct interviews with potential buyers to ascertain their interest level, ability to meet the financial requirements of the transaction and if the business is the right match for them. If approved, we will ensure a confidentiality agreement is signed by the potential buyer as a sign of commitment that the buyer is sincerely interested in the business, is financially qualified and understands and agrees to the confidentiality expected in the process of our selling a business. Although you will be with the one broker our entire team will be working on selling your business.
Inspections – Our brokers will answer as many of the potential buyer’s questions as possible and determine if an inspection is warranted. If so, you will be contacted by our broker who will organise an inspection of the business with you. At this meeting either you or your representative will show the prospective buyer the business and respond to any general queries. In this step of selling a business we realise the meeting may need to be scheduled at the appropriate time and place so not to alert employees about the process of selling your business.
Heads of Agreement – When a prospective purchaser wishes to make an offer on your business, LINK Business Melbourne will have them sign a “Heads of Agreement” which is a conditional offer of purchase and have them place a deposit on the business. This deposit is typically 1% or $1,000 whichever is the greater. This payment is held in trust by LINK Business Melbourne and is refundable to the buyer if the sale does not proceed.
Buyer’s Due Diligence – It is normal when you sell a business that the offer to purchase will include a provision for the business buyer and/or their advisors to verify the accuracy of the Vendor’s operational and financial performance and other items. LINK Business Melbourne, as your representative, will work with you, the buyer and any additional parties to address any issues that arise.
Contracts of Sale – LINK Business Melbourne will prepare a draft Contract of Sale and forward it to you and your legal advisors for perusal. Once the solicitors have approved and accepted the Contract of Sale, they are then forwarded to both the Purchaser and the Vendor for signing. On signing the contract the Purchaser pays the balance of the deposit which is usually 10% or $10,000 whichever is the greater. This payment is held in trust by LINK Business Melbourne, pending the completion of the sale.
Final Closing – After signing of the contracts, the Purchaser applies for the transfer of the lease of the premises and any other relevant permits and licences, and checks the assets to ensure that everything has been correctly included. The balance of the final sale price is payable by the Purchaser to the Vendor at settlement.