Most entrepreneurs only do this once in a lifetime. Then you better do it right!
We'd like to help with that by providing insight into what to expect when you begin such a process. On this page you can read what the process entails, how long it takes and what to expect.
Want an early indication of what a potential buyer would pay for your business?
In our knowledge base, you'll find answers to the questions of where best to start, what the process entails, how long it takes and what it costs.
What you read in this article, among others:
Every business sale has the same broad outlines, but no two paths are the same. Here's how it works.
We always start with a free cup of coffee to get acquainted. We want to know who you are, what you have built and what you want to achieve with the sale. And of course you want to know who we are and whether you trust us. Only when there is a mutual click we take the next step.
In this conversation we also discuss the mutual match and client needs. If there is a click then we will provide a quote. That quote describes our approach, timeline and fee structure.
Before we enter the market, we lay a good foundation. We take stock of your business and personal goals and map out your financial situation. What do you want for your business? What do you need to take a good next step?
At the same time, we gather the information needed for the sales book and compile an initial list of potential buyers. Who are the logical parties in your industry? Which investors are active in your sector? This preparation largely determines how quickly and smoothly the rest of the process goes.
This is one of the most important steps. We perform a SWOT analysis of your business and discuss the business vision with you. Based on this, we prepare the valuation and together set the asking price.
Then we write the information memorandum. This is your company's sales book: a professional document that contains everything a serious buyer wants to know. The company's history, financial performance over the past few years, market position, team and growth opportunities. This document is confidential and is shared only with buyers who have signed a confidentiality agreement.
Want to read more about valuation then click here
Now we actively search for the right buyer. We post an anonymous profile on platforms such as Brookz and BedrijvenTeKoop and put the sales profile out in our network. We actively approach potential buyers, send the confidentiality agreement and the sales book, and conduct the first qualification interviews without you having to be present.
From all interested parties we collect non-binding offers: initial bids without legal obligations. Based on these, together we shortlist the most serious candidates.
Depending on your situation, there are different types of buyers:
Want to read more about selling your business without a successor then click here
We conduct negotiations with potential buyers for the best deal. Together, you choose the candidate who is the best fit for your company and your people. We establish the most important terms: the sales price, the deal structure and any additional agreements such as a transition period or earn-out.
The agreements are recorded in a Letter of Intent. This is the Letter of Intent: the first formal confirmation that both parties want to move forward. A lawyer checks it before you sign.
After the Letter of Intent, the book examination, also called due diligence, begins. The buyer checks everything in the book of sale: finances, contracts, personnel, legal situation and any risks. We set up a data room where all documents are securely shared.
We supervise the entire book examination, answer questions from the buyer, and guide renegotiations if necessary. A corporate lawyer drafts the final sale agreement. You conclude with the signature and, in the case of a limited liability company, the share transfer at the notary.
On average, this process takes 7 months. You remain an entrepreneur while we do the heavy lifting.
Are you curious about how we approach this with you?
Most businesses are not ready to be sold right away, and that is not a problem. However, it is something to work on in a timely manner.
Getting ready to sell means: reducing dependency on you as the owner, cleaning up finances, documenting customer contracts and putting records in order. Those who do this well get a higher price and less hassle during the bookkeeping process. A buyer will pay more for a business that functions well even without you.
Want to read more about getting your business ready to sell? Download the ebook here
The cost of assistance with a business sale typically consists of a start-up fee and a results-based fee upon a successful sale. That fee is a percentage of the sales price and varies by agency and by route.
At Next Steps, we almost always work on a results basis. That means you don't pay a full fee if the deal doesn't go through. We only earn if you close a good deal.
Many business owners who try to sell on their own miss out on money in negotiations or drop out because the process takes too much time in addition to running the business. A consultant pays for itself in the selling price.
Most entrepreneurs who sell their business have no family or employee ready to take over. No son or daughter who wants it. No employee who is ready. That's not a problem but it does require a different approach to finding the right buyer.
There are four routes that work well even without a successor: sale to an industry peer, a management buyout by an employee, a management buy-in by an outside manager or sale to an investor.
Want to read more about selling your business without a successor then click here
Dominic took over Backbone Marketing from its owners.
The owners wanted to retire. No successor. Dominic van de Bunt had been working there for 5 years and took over the business. A number of clients went along silently. "It felt like a sparring partner, not a business thing," he says.
Johan and Jeroen took over Jagerteam BV from Jan
Jan wanted to retire. Two employees wanted to take over. The informal arrangements were turned into a legally watertight deal.
You can. Many business owners who try that leave money in the negotiations or drop out because the process takes too much time in addition to running the business. A consultant pays for itself in the selling price.
No, not right away. Most sales processes are completed without staff knowing in advance. You discuss with your advisor when and how to communicate that.
With a result commitment, you don't pay a full fee if the deal doesn't come together. So your advisor has the same interest in a successful outcome as you do.
On average, 7 months. The speed depends on how well prepared the business is and how quickly the right buyer is found. A business that is ready to sell and has a clear sales book goes faster than one where preparation has yet to begin. The book search alone usually takes 4 to 8 weeks.
The information memorandum is your company's sales book. It is primarily a condensed and neutral account of everything a serious buyer would initially want to know: the history, finances, market position, team and growth opportunities. The document is confidential and is shared only after a confidentiality agreement is signed.
A Letter of Intent (LOI) is the letter of intent you sign after agreeing on the outline of the deal. It is the first formal confirmation that both parties want to move forward. The LOI lays out the sales price, deal structure and key terms. A final sales contract follows afterwards.
Due diligence is the book review that the buyer performs after the Letter of Intent is signed. The buyer checks everything on the book of sale: finances from the past few years, contracts with customers and suppliers, personnel and any legal or tax risks. The better prepared your business is the smoother this will go.
Do you want to know if you are ready to sell yet? Do the quick scan here and see where you stand.
