Selling Your WCO Business Part 4
This article is part of a 5-part series. These blogs were originally published as “Selling Your Company” Wildlife Control Technology Magazine Sept/Oct 1999. Disclaimer: Article for informational purposes and is not to replace good legal counsel.
The Sale Process
If all goes well, you will be receiving some inquiries from potential buyers. Give them the price and any terms you might have for the sale. Be prepared for questions such as “why are you selling”, “How did you decide on the price” “What are your payment terms”. Etc. Also prepare yourself to interview the buyer, if the price hasn’t scared them away. Ask the buyer what he/she is looking for in a business, “How they might intend to pay for it”. “Why are they buying” etc. You want to try and decide about the worthiness of the purchaser. Remember, selling a business isn’t like a tag sale. You may have sold the company and equipment only to have the buyer default. You also don’t want to spend a lot of time with tire kickers who just want to learn about your company without any intention of buying. This is one area where a business broker can be invaluable as they screen buyers for you.
Once you find a potential buyer, you should show them a profit loss statement. The profit loss statement should only show them in writing what you have already told them in word. Remember, I said straightforward not a non-negotiable price. Negotiations can change a number of things but you need to have an initial price in mind over which the negotiations can start. After you come to some sort of a verbal agreement, the buyer should perform a due diligence. This shows they mean business and are going to place a bid. It is here that the buyer will inspect the items of the sale and provide an offer.
Letter of intent (Purchase and Sales agreement). This is the document you want. It will state the terms of the purchase. It will often have escape clauses and state that the purchase will take place within a certain time period.
Closing (Sale becomes finalized). This is the final document. Once these papers are signed then the business has finally been sold.
About the Author
Stephen M. Vantassel is a Certified Wildlife Control Operator (CWCP®) who helps individuals, businesses, and agencies resolve wildlife damage issues through training, writing, expert witness, and research. His latest books are the Wildlife Damage Inspection Handbook, 3rd edition and The Practical Guide to the Control of Feral Cats. He can be contacted at wildlifecontrolconsultant at gmail dot com.
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