Home Selling Tutorials
Selling Tutorials
Category: Selling
Selling Process
ADVERTISING
Electronic
Newspapers
Referral / Word of mouth
INITIAL CONTACT
Introduction Meeting
E-mail
Personal Details
Indication of funds available
Background & industry
Interest
Area
Confidentiality Agreement
No information supplied prior to the signing of Confidentiality Agreement.
SUPPLY OF INFORMATION MEMORANDUM
Limited Financial Information supplied
FOLLOW-UP REACTION / FINANCIAL STATEMENTS
Prepare Financial statements / Forecast
SUPPLY QUERIES / FINANCIAL STATEMENTS
Audited / Bookkeeper Financials
ARRANGE MEETING WITH SELLER
FOLLOW UP REACTION
FURTHER NEGOTIATIONS
PREPARE OFFER WITH ANNEXURES
Financial Statements of which offer was based (Annexure A)
List of Fixed Assets (Annexure B)
- For all your legal needs please feel free to email Tiaan Esterhuyse at STBB / SMITH TABATA BUCHANAN BOYES at TiaanE@stbb.co.za or visit their website at www.stbb.co.za
DISCUSS OFFER
COPIES OF SIGNED OFFER TO ALL RELAVENT PARTIES
APPLICATION FOR FINANCING
Complete Business plan
3 years Financial Statements
Personal Details / cash flow for applicant
Submission of application to Bank
Registration of CC
ARRANGE FOR TAKE-OVER
Register for VAT / UIF etc.
Telkom / vehicle licenses / municipal account / Lease Agreement
Ensure Inspections / certificates necessary is in place
Stock take
Category: Selling
Selling a Business Tutorial
Why sell your business?
Ø Plan your retirement – or reduce the amount of time spent working in your business.
Ø Secession – Is there a logical second generation to take over your company? Only one in ten family businesses makes it to the third generation.
Ø Diversity of assets – As most of your net worth is tied up in your company, you want to diversify your assets, as well as gain some liquidity.
Ø Capital for growth: Do you see a need for additional external capital to continue to grow your company?
Ø Association with a larger firm. – Do you seek the broader distribution channels, marketing strengths or manufacturing efficiencies that a larger firm can offer?
Ø Merging between two or more businesses creating a bigger capital base, improve expertise by diversify responsibilities and have the freedom to take the prudent and appropriate risks that you might not have otherwise made had you continued to own the company alone.
Ø Career change. Do you feel like a career change, doing what you know and enjoy best.