A sale can be exclusive or through an auction. The steps within these processes are similar.
Type of processes
The sale of your business can be done on an exclusive basis with one potential Buyer only. Or, you can structure the process as an auction, with several potential Buyers. Understand the advantages of each of the processes to know how to best structure your sales process.
Steps in a typical process
The following steps are followed in a sales process:
- Expression of interest
- Receive interest and sign confidentiality agreement
- Share a Confidential Information Memorandum (CIM)
- Receive non-binding offers
- Sharing of information and due diligence phase
- Receive binding offers and drafting the purchase agreement