Lack of information is the leading reason deals don’t go through. Too little information can cause:
- Trust issues
- Wasted time, effort, and resources
- Unnecessary anxiety and disappointment
In general, the faster a buyer knows if your business fits their goals and budget, the more likely you are to target qualified, interested prospective buyers. The best way to provide a buyer with all the preliminary information they need to make this informed decision is through an Offering Memorandum. One-pagers are excellent tools to provide a high-level snapshot and encourage a potential buyer to want to learn more. They can help build interest among prospective buyers, so they feel compelled to complete a Non-Disclosure Agreement in order to receive the detailed OM. An Offering Memorandum is where you have the chance to sell a potential buyer on the true value of your business. The detail in the Offering Memorandum can help generate conversations and build confidence in the value of the sale offering with prospective buyers to further the sales process from inquiry, to tour, to conference call with owner about industry specifics, to a Letter of Intent, and finally a sale.
This Memorandum requires a close partnership, because no one knows your business better than you. If you work with SBRE, we will research your business, listen attentively during our meetings, and provide you with a full list of any remaining questions to allow us to package and market your business. Once we have a comprehensive Offering Memorandum, we use our extensive resources and database to ensure your business is being put in front of the right buyers.
So What Questions Do Buyers Want To Know The Answers To?
- What was the detailed cash flow for the last 3 years?
- How much money is required to buy the business?
- What is the annual change in sales? In profit?
- What is your current debt position?
- How much inventory do you have? What is the value?
- Will the seller provide training and transitioning materials? If so, what and for how long?
- What makes your business unique? Competitive?
- Who are your biggest competitors?
- What products and services define your business?
- What type of customers define your business? Repeat? New? Referral?
- What are your customer details?
- What can be done to grow the business?
- What can the buyer do to add value to the business?
- Are there any existing lawsuits, contracts, agreements, licenses, commitments, pending negotiations, etc.?
- What is your marketing plan? How much do you spend on advertising? What is the return?
We Encourage You To Set Up A Free Consultation With Us To Discuss Your Goals And Business.