Designing & Building a Smooth Transition
The first step is to get to know each other and discuss if our goals align regarding the future of the company. Everything always starts with a human connection and building trust!
Open and honest communication between the buyer and seller is crucial throughout the transaction process, outlined below.
Steps in the Process
NON-DISCLOSURE AGREEMENT
Both parties involved will sign an NDA to ensure that any information disclosed and exchanged during the process is kept strictly confidential.
Letter of intent (LOI)
A non-binding letter that outlines the terms and conditions of the proposed sale. Upon acceptance by both parties, the process moves into the due diligence period.
Due Diligence Period
Thorough study of the business to verify its financial, legal and operational status by reviewing contracts, financial statements, owner's tax returns, licenses and permits.
Purchase & Sale Agreement
A legally binding document that outlines the terms and conditions of the sale, including purchase price, payment terms, warranties, contingencies and operating agreement.
Closing & transfer
Closing documents include bill of sale, transfer agreements, closing statements, transfer of licenses & permits and any agreements with key employees
transition & continuation
Seller stays involved and gradually transfers knowledge & leadership to the buyer. This can be a 1-3 year process depending on seller's preference & retirement goals.