When you want to sell your cafe, you will realize that it is quite a complicated and a daunting task.
We will make it simple and clinical for you by preparing you for that selling process with the help of a business broker. There are steps you could follow while preparing to sell your business.
DECISION TO SELL
You will have to be clear about your decision to sell – Selling of your cafe could stem from various circumstances in your life – they could be retirement or a change in your lifestyle and your business circumstances.
You have to do adequate research of your market before you sell – You have to explore all alternative options while understanding the business sale procedure along with the business market so that you reach a level of confidence that you are making a decision which is an informed one. You will have to assess the value of your cafe and then set a price tag to it.
SELECTING A BUSINESS BROKER
You need a business broker who helps you in preparing you to sell your business; he or she has to lead and aid you in all the steps of this process. The key steps where you need the broker’s help is in locating prospective buyers. Before you choose a business broker, you have to check out their experience in the field as well as their knowledge of the cafe market you are in.
PREPERATION FOR SALE
You have to take the help of the business broker in preparing a sales memorandum in such a way that it attracts potential buyers and also gives you a handsome price in the bargain. The Memorandum should include a description of your business along with its history and the reasons for selling your cafe. An important inclusion is the asking price.
Once the sales presentation is ready, it is time to market for potential buyers. Advertising is an effective medium through channels of specialized café for sale websites and social media.
Once a buyer is identified, the first contact point would be a confidentiality agreement with that buyer. This has to be a legally binding agreement where the buyers have to commit not to disclose information about your cafe to other parties.
This is the phase when the buyers go on a round of inspection of your cafe and a tour will have to be presented of your business facilities.
OFFER OF SALE
This has to be given as a letter of intent and has to include name of the buyer, date, buying price and time frame allotted for settlement.
The business broker will help with the negotiation phase and use smart techniques of being communicative and creative in bargaining for the best price for your cafe from the buyers.
This process is carried by the buyer after you accept the offer. They have to engage their solicitor, accountant and business broker to assist in investigating the financial books and records of the business and verify them.
This is the point of signing the sale contract of your business with conditions that are agreeable to both the buyer and you. This is the point of exchange where the buyer shows commitment to buying your business.
The time period between the exchange and the settlement is usually six weeks. This is the point where the buyer makes the final payment for buying your business.
This is the transition period where you, as the previous owner, remain with your cafe business enterprise for a specified period of time to help the buyer in getting familiar with business operations, training and getting introduced to the customers and suppliers involved with your cafe.
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