10 Simple Steps to Selling Your Business


Prepare Your Business

"Grooming" your business for its sale by maximizing its efficiency, earnings, potential, and presentation. Minimizing costs and increasing profit by as little as $5,000 per year could add thousands to the sale price. We can help you recast your P&L Statement to determine the true SDE (Seller's Discretionary Earnings) of your business.


Value Your Business

There are several methods of valuing a business. In most cases, KT uses a combination of these to determine the most realistic selling price. The methodology used must be accurate and appropriate for your type of business, and be able to withstand scrutiny by financial professionals. Most business categories have established methodologies, but they can only be used as a guide. Every business is unique, so it is essential to deal with brokers who have proven experience in establishing actual market value.


List Your Business

We list your business with a Representation Agreement, which is legally required before we can start the selling process. We simultaneously fill out a Business Fact Sheet, which gives us all the required information for accurately describing your business to potential Buyers and an Agency Disclosure explaining our agency relationship with you and the Buyers. If you are a corporation or an LLC. we will also need a shareholder/member Authorization.


Create an Information Memorandum

A comprehensive sales and marketing document prepared by IT provides a detailed overview of your business. We craft this document to ensure it is accurate and honestly represents your business and its benefits. It can get potential Buyers of your business excited about it or, if not done correctly, it can cause them to overlook it.


Identify Buyers

KT sells some businesses before they are publicly advertised. KT maintains an extensive database of qualified Buyers seeking enterprises in all sectors. As independent professionals, KT brokers can discreetly approach these Buyers in a queue that we believe might be interested, without divulging information that might identify your business.


Market Your Listing

KT is one of the largest business sales marketers and advertisers in the world. We closely monitor our
marketing programs. Through experience, we know which approaches are most effective. We carefully prepare our Information Memorandum, our ads, our magazine, our brochures, our web presence, and other marketing and sales tools to attract Buyers without identifying your specific business.


Locate "Real" Buyers

Acting as an independent third party, KT brokers maintain confidentiality until Buyers are verified for buying capability: education, experience, and finances. Checking a buyer to ensure their intentions are "real" is often a surprisingly time consuming and complicated process. Statistics show that for every ten inquiries about a business for sale generated by a marketing campaign, only one is a "real" Buyer.


Negotiate the Purchase Agreement

After a Buyer has reviewed the Information Memorandum, met with the owner, viewed the business and expressed interest, a Purchase Agreement is negotiated and signed by both Buyer and Seller. At this stage, KT does not disclose commercially sensitive details.


Manage Disclosure & Due Diligence

The signing of the Purchase Agreement does not necessarily mean the business is sold. KT manages the seller and buyer disclosure, which consists of a series of questions about each other. Next, they will each verify the information about the Seller and Buyer during a due diligence period. The due diligence process generally takes five to ten working days. Although, for more complex businesses, it can
take longer.


Sign Conditions Removal & Close

Once all the conditions in the Purchase Agreement have been satisfied, the business checks out, the Buyer checks out, the Conditions Removals are signed, and escrow will be opened. Escrow is a means time period. and trust arrangement during which the paperwork required for the sale of a business is processed. Escrow acts as a "neutral" agent of Seller, Buyer, and Broker to collect documents and money and distribute the same pursuant to escrow instructions as directed by the principals. The seller usually assists in the business for an agreed period after the sale, to train the new owner and facilitate a smooth transition.

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