How our Process Works
Generally, the very first step in the process leading to the transfer of a business to a new owner begins when the current owner decides to sell. The owner contacts The Pulliam Company to assist in the sale of the business.
The process of bringing the business to the market usually occurs in this sequence:
- The seller engages The Pulliam Company to represent him/her by executing an Exclusive Right of Sale Contract.
- The seller completes the Seller’s Disclosure Statement and the Business Analysis Information Report.
- The seller provides The Pulliam Company with all additional information and documentation needed to determine a fair asking price and terms and to present a fair and accurate description of the business to prospective buyers.
- The Pulliam Company assists and counsels the seller in setting an appropriate asking price and terms for the business.
- The Pulliam Company prepares a description of the business to be promoted publically and also a Confidential Information Memorandum to be given to qualified buyers after they have signed a Confidentiality Agreement.
- The Pulliam Company uses its resources, market knowledge, contacts, and advertising to solicit prospective buyers.
When one or more prospective buyers are identified, the process of making an offer to purchase generally goes as follows:
- The backgrounds, expertise, and financial capability of prospective buyers are evaluated by The Pulliam Company to determine if they are qualified to purchase the business. Prospective buyers complete a confidential Buyer Information Report and Financial Statement.
- The Pulliam Company assists the buyer in selecting business opportunities that meet his/her requirements.
- Qualified buyers are required to sign a Confidentiality Agreement that protects the seller’s sensitive business information.
- The qualified buyer is given the Confidential Information Memorandum.
- If the buyer shows continued interest, The Pulliam Company introduces buyer to seller and arranges for an inspection of the business.
- Should the buyer wish to purchase the business, he/she offers a Purchase Agreement or a non-binding Letter of Intent to Purchase outlining the price and terms under which he/she is willing to buy. The Pulliam Company may assist the buyer in preparing the offer.
Once an offer to purchase has been made:
- If the offer is acceptable, the seller signs it. In the case of a Letter of Intent, an attorney uses it as the basis to prepare a binding purchase agreement which is then executed by buyer and seller.
- If the offer is not acceptable, The Pulliam Company negotiates with the buyer to achieve an agreement acceptable to both buyer and seller. If agreement is reached, a binding purchase agreement is prepared and executed.
- The buyer performs the due diligence as provided in most purchase agreements. Assuming the buyer finds the business as he/she expected, any due diligence contingencies are waived and closing time is scheduled.