Steps involved in the selling process in the United States

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hi my name is Lana howl and I'm Adriana Smith and we're business brokers with first choice business brokers in Los Angeles sellers always want to know about what the sales process is involved with selling their business so we're going to go through the step-by-step process of how you sell your business first when you inquire with a business broker like ourselves we look at your financials and usually it's typically the last three years of your financials we look at the profit and loss statements as well as the balance sheet and once we review your financials we're able to assess the value of your business to help you understand what your business is worth in today's market most business owners want to know if I sell my business how much money do I have to retire on yeah and usually they always want a little more than their business is worth isn't that right that's true unfortunately the next step in the process is that we prepare the marketing materials we do this with information that you provide to us and you are able to review all of the marketing materials before they go out to market and one thing to know is that we have two sets of marketing materials the first one is the blind advertisement so it does not contain any of your information such as the name of your business or the location so that you cannot know which business this is for sale the second one is a confidential marketing package that's given to a buyer later in the process so when we put the public advertisements together those are confidential out in the marketplace and to go off with Adriana saying those public advertisements go on multiple national international marketplace websites to give your business as much exposure for the sale process and get you that right buyer absolutely and once a buyer inquires on your business then they sign our non-disclosure agreement and believe me our NDA is tough some say it's a shark's mouth full of teeth and that way we make sure that we protect your confidential information as buyers review your business once we get past that NDA we provide them with that confidential business profile and from there buyers get to know your business they ask us questions and next we get to setting up by cell meetings where they meet with you the owner when the buyer and sellers meet for the buy/sell meetings they're trying to find out if this business is going to be the right fit for them usually after that meeting is when they'll know whether or not they're thinking about pursuing this opportunity or not and that's typically when the buyer will put together a purchase agreement if they want to move forward and we present it to the seller the seller then has three options accept reject and counter and believe me most of the time we're countering usually we have a bit of back-and-forth before we finally agree on the deal right once we agree on the price then the deal process starts and we coordinate the rest of the process until closing so that includes the due diligence period where the buyer is able to review all of the books and records of the business before moving forward with the transaction next we'll have the landlord approval process so you as a buyer need to qualify for the lease or the assignment or the extension with the landlord also the buyer has the right to review and accept the lease terms given to him by the landlord another party to the deal is the bank if the deal has financing there might be some sort of bank loan involved if there is that's going to be a very long process that needs to be monitored and make sure that we are pushing through step by step by step and it's very document intensive believe me you will be submitting multiple applications to the bank right and then the only other party that we want to make sure we mention is escrow escrow is a third party that is going to be doing the tax clearances and the lien checks to make sure that both you the seller as well as the buyer are protected throughout the sales process and finally we get to our favorite part closing day and you get your check and now you get to start the next chapter in your life well that covers the sale process and don't forget to check out our other videos on buying and selling businesses