Preparing a Business for Sale

A client of the consulting practice was receiving regular enquiries about the possible purchase of his business. Every time this occurred the business was disrupted by virtue of the time taken for the principal to engage with the prospective buyer and provide the usual financial information to them.

Our client was also concerned about the potential loss of confidential information and valuable IP. We were engaged to find a solution to the problem.

First we put together a comprehensive Information Memorandum which set down sufficient factual information about the business and its profitability to satisfy first-stage enquiries. Then we developed a series of questions with which our client could establish the bona fides of prospective buyers. Finally we helped establish a Confidentiality Agreement for each prospective buyer, without which no information would be disclosed.

These tools enabled our client to identify and deal with the tyre-kickers quickly and politely and to engage only with serious potential buyers of the business. This resulted in serious negotiations with one party which are yet to be finalized.