The process of buying or selling a business can be challenging if you do not have any appropriate exposure in business before. You therefore need to carefully analyse the procedure of buying or selling a business.
There are few steps involved before you buy or sell a business. These steps will give you a fair idea regarding what needs to be done before you actually start the process.
Organise your business
In the sale of a business, all equities, liabilities, profit & loss statements, tax returns, ownership, and other information of the business will be reviewed. So, the seller needs to have the information ready.
The buyer of a business must be able to genuinely prove that the buyer can afford to purchase the business by ensuring financing, lines of credit and/or shore up cash positions.
Non-Disclosure Agreement
After the buyer sees an opportunity in the seller’s business and the seller agrees to entertain the buyer as a prospective purchaser, both parties’ trade secrets must be kept confidential. For the same purpose, a Non Disclosure Agreement (NDA) is required, irrespective of the fact whether the parties to the agreement know each other or not.