The sales memorandum is the initial marketing document which is sent to potential buyers. The aim of this document is to make your business look attractive and to provide an initial source of information to prospective candidates. You should not include more detailed and confidential data.
Once you have received opening offers, the bargaining process begins. You should have a realistic valuation in mind and start by rejecting bids significantly below this level. Remaining buyers should be offered closer access to data and selected management, and you should then ask them for final offers.
Once a buyer has been chosen, your objective should be to finalise the sale and purchase agreement as quickly as possible, keeping at least one other interested party as back-up. But before this can happen the buyer’s offer will be subject to further due diligence.Last Updated
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Business strategy and planning >
Buying and selling a business
