Generally, the very first step in the process leading to the transfer of a business to a new owner begins when the current owner decides to sell.  The owner contacts Bluegrass Business Advisors to assist in the sale of the business.

The process of bringing the business to the market usually occurs in this sequence:

  • 1. The seller engages Bluegrass Business Advisors to represent him/her by executing an Exclusive Right of Sale Contract.

  • 2. The seller completes the Seller’s Disclosure Statement and the Business Analysis Information Report.

  • 3. The seller provides Bluegrass Business Advisors with all additional information and documentation needed to determine a fair asking price and terms and to present a fair and accurate description of the business to prospective buyers.

  • 4. Bluegrass Business Advisors assists and counsels the seller in setting an appropriate asking price and terms for the business.

  • 5. Bluegrass Business Advisors prepares a description of the business to be promoted publically and also a Confidential Information Memorandum to be given to qualified buyers after they have signed a Confidentiality Agreement.

  • 6. Bluegrass Business Advisors uses its resources, market knowledge, contacts, and advertising to solicit prospective buyers.

When one or more prospective buyers are identified, the process of making an offer to purchase generally goes as follows:

  • 1.The backgrounds, expertise, and financial capability of prospective buyers are evaluated by Bluegrass Business Advisors to determine if they are qualified to purchase the business. Prospective buyers complete a confidential Buyer Information Report and Financial Statement.

  • 2. Bluegrass Business Advisors assists the buyer in selecting business opportunities that meet his/her requirements.

  • 3. Qualified buyers are required to sign a Confidentiality Agreement that protects the seller’s sensitive business information.
  • 4. The qualified buyer is given the Confidential Information Memorandum.

  • 5. If the buyer shows continued interest, Bluegrass Business Advisors introduces buyer to seller and arranges for an inspection of the business.

  • 6. Should the buyer wish to purchase the business, he/she offers a Purchase Agreement or a non-binding Letter of Intent to Purchase outlining the price and terms under which he/she is willing to buy. Bluegrass Business Advisors may assist the buyer in preparing the offer.

Once an offer to purchase has been made:

  • 1.If the offer is acceptable, the seller signs it. In the case of a Letter of Intent, an attorney uses it as the basis to prepare a binding purchase agreement which is then executed by buyer and seller.
  • 2. If the offer is not acceptable, Bluegrass Business Advisors negotiates with the buyer to achieve an agreement acceptable to both buyer and seller. If agreement is reached, a binding purchase agreement is prepared and executed.

  • 3. The buyer performs the due diligence as provided in most purchase agreements. Assuming the buyer finds the business as he/she expected, any due diligence contingencies are waived and closing time is scheduled.

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