Our Process

10-Step Business Selling Process

Step 1: Initial Free Consultation

At an initial consultation both parties will be required to sign a Non-Disclosure Agreement (NDA). An NDA is an agreement that legally creates a confidential relationship between A R Business Brokers and the Seller. It is designed to protect the Seller’s proprietary information and trade secrets. When the NDA is signed, A R Business Brokers and the Seller can begin introductions to learn more about each other and answer any questions.

Step 2: Provide Documents

A variety of documents will be required to be submitted by the Seller that are necessary to determine the Seller’s Most Probable Selling Price (MPSP). The MPSP is an estimate of the value of the business based on a variety of factors. Required documents during this stage include:
1. Seller’s Questionnaire
2. Recent Financial Statements (Last 3-5 Years)
3. Executed Lease
4. Articles of Incorporation
5. List of Equipment (To be Included and Excluded in the Sale)

Step 4: Signing the Engagement Agreement

When the listing price is agreed upon, both A R Business Brokers and the Seller then enter into an official relationship by signing the Listing Agreement. This agreement describes the legal business relationship the Seller will be entering into with A R Business Brokers along with the relevant terms and conditions.

Step 3: Calculation of Most Probable Selling Price (MPSP)

A team of professional accountants and analysts will review the submitted documents and prepare a Normalized Income Statement. A Normalized Income Statement involves adjusting non-recurring expenses or revenues so that it only reflects a company’s usual transactions. Financial statements often contain expenses that do not constitute the normal business operations, and that may otherwise hurt the company's earnings and value of their business. Once the Normalized Income Statement is prepared, a MPSP and listing price can be determined and agreed upon.

Step 3: Calculation of Most Probable Selling Price (MPSP)

A team of professional accountants and analysts will review the submitted documents and prepare a Normalized Income Statement. A Normalized Income Statement involves adjusting non-recurring expenses or revenues so that it only reflects a company’s usual transactions. Financial statements often contain expenses that do not constitute the normal business operations, and that may otherwise hurt the company's earnings and value of their business. Once the Normalized Income Statement is prepared, a MPSP and listing price can be determined and agreed upon.

Step 4: Signing the Engagement Agreement

When the listing price is agreed upon, both A R Business Brokers and the Seller then enter into an official relationship by signing the Listing Agreement. This agreement describes the legal business relationship the Seller will be entering into with A R Business Brokers along with the relevant terms and conditions.

Step 5: Onboarding

Further documents will be requested from the Seller including legal, financial and tax documentation that will be required during Step 9: Due Diligence and Contingencies. The due diligence process takes place shortly before the sale goes through and allows the Buyer to verify the details about the Seller’s business. In the meantime, these documents will be organized and stored in a secure data room that is only available to A R Business Brokers so that the team can learn more about the business for sale and begin preparing the business marketing materials.

Step 6: Marketing Your Business

A teaser about the business will be marketed to a database of over 18,000 interested Buyers and marketed on a variety of online and print platforms. A teaser is a brief, confidential write up of the business providing only basic information without identifying the name of the business or giving enough information for the public to identify the business for sale.

Step 8: Offers and Negotiations

Interested Buyers will send in a Letter of Intent(LOI) or an Engagement Letter. The LOI is the Buyer’s written proposal and it outlines a proposed price and terms. The purpose of this document is to lay out the fundamental terms and officially declare that the negotiations can begin. The LOI is non-binding, which means it does not actually legally commit the buyer to follow through with the terms. A R Business Brokers will facilitate negotiations between the Buyer and Seller and guide the process as the LOI/Engagement Letter is accepted by both parties.

Step 7: Buyer Search and Screening

Qualified Buyers interested in more information about the business for sale will be profiled and required to sign an NDA, which protects the Seller’s confidential business information and articulates that the business sale is to be kept confidential. After an NDA is signed, the team can engage in revealing more detailed information and provide information packages about the business for sale.

Step 7: Buyer Search and Screening

Qualified Buyers interested in more information about the business for sale will be profiled and required to sign an NDA, which protects the Seller’s confidential business information and articulates that the business sale is to be kept confidential. After an NDA is signed, the team can engage in revealing more detailed information and provide information packages about the business for sale.

Step 8: Offers and Negotiations

Interested Buyers will send in a Letter of Intent(LOI) or an Engagement Letter. The LOI is the Buyer’s written proposal and it outlines a proposed price and terms. The purpose of this document is to lay out the fundamental terms and officially declare that the negotiations can begin. The LOI is non-binding, which means it does not actually legally commit the buyer to follow through with the terms. A R Business Brokers will facilitate negotiations between the Buyer and Seller and guide the process as the LOI/Engagement Letter is accepted by both parties.

Step 9: Due Diligence and Contingencies

At this stage, there are several key conditions that will be addressed, including but not limited to, financial/legal due diligence performed by the Buyer and his or her accountant and attorney. Due diligence is the process when the Buyer has the opportunity to examine all financial records and documents. If there is a lease involved, the buyer and his or her council will verify details including the measurements, insurance, market and lease agreement. Next, we move onto the lease agreement, franchisor approval (when applicable) and lawyer review/definitive purchase agreement where the lawyers for both the Buyer and Seller agree on final terms of the sale and closing.

Step 10: Closing

Closing is the most exciting and rewarding part of the entire process. This marks the completion of the sale process. Over the years, A R Business Brokers has helped hundreds of clients sell their business for top dollar. Check out what Business Owners who sold their business with A R Business Brokers have to say at www.aldrin.ca