Sell
Your Business Tips, Hints & Techniques:
Enter
your name & e-mail address below and each week I'll send you
detailed tips, facts, resources & ideas you can use right
away to help sell your business faster and for more money.
Step
1 - Preparation
The Mini Selling Memorandum
We've
already discussed how to create a full
length selling memorandum, but for some smaller bsuinesses
this may be more than you need. Obviously, if your business
is a single proprietorship or a small gift shop with just one
employee, a discussion of the board of directors, intellectual
property or manufacturing procedures won't be necessary.
But
a discussion of the neighborhood in which your stores resides,
the below market rate lease that you have in place for two more
years, or the amount of reliable repeat business you enjoy are
all important facts you need to communicate.
Below
is just one example of a Summary or Mini Selling Memorandum
that might be more appropriate for your situation:
Business
Summary
Business
Name: Joe's Sports bar
Phone #: 555-555-1212
Address: 627 Main St.Tucson, AZ
Owner's Name: Stephen Johnson
Business Type: Sports Bar
General Location: South of Downtown
Hours: M-Th 11:00 a.m. -12:00,
Fri-Sat: 11:00 a.m.-2:00 a.m., Sun. 12:00 p.m. - 11:00 p.m.
Employees: Full-time: 7, Part-time: 10 Managers: 1 plus
owner
Organization: S Corp.
Years in Business: 4
Years Owned: 4
Selling Price: $600,000
Financing: $300,000 down, balance @ 8% for 60 months,
$6082.92
Overview:
This Class #6 sports bar/restaurant has it all. Great central
location with largest sign on one of city's
busiest streets. This bar opens for lunch with a strong happy
hour following, steady dinner and strong late night crowd. The
bar offers a game room, pool, shuffleboard, and karaoke with
dining for 100 inside and a patio that seats 51+.
Facilities: We are newly remodeled with a full service
courtyard patio. Eight new plasma TVs to go with the existing
2 big screens and 27 other TVs . Dining for 100 inside and a
patio that seats 51+. This is a free standing building shared
with only one other tenant, with ample parking for the busiest
of nights.
Lease: Lease is in the first year of a new three year agreement
with 2 more three year options, current rent at $ 6381.41 with
triple net charges $1835.07.
Competition: This business has been established since
1998, is on a very busy street with a great staff in place and
a very loyal regular clientele so strong competition is not
a concern
Growth/Expansion: This business needs a hands-on owner
to grow. Current owner is content with business and therefore
has not focused on marketing or other ways to grow the business.
The surrounding area has been growing rapidly with new retail
space, office building and apartment complexes. There is much
room for growth with new more energetic ownership.
Support/Training: Owners will give 80 hours of training
over four week period and will be available for a weekly phone
consultation for one month after that at no charge.
Reason Selling: Retirement
Skills Required: General business experience. Skills/knowledge
specific to the bar industry can be learned quickly. Owner will
help with training and consulting.
Non Compete Clause: Not within 25 miles for 3 Yrs
Assets:
| Inventory |
$xx.xx |
Included |
| Furnishings/Equipment |
$xx.xx |
Included |
| Real Estate |
$xx.xx |
Not Included |
| L/H Improvement |
$xx.xx |
Included |
Financial Summary: PL And Tax Returns
| |
YTD
2008
|
2007
|
2006
|
| Gross Sales |
xx.xx
|
xx.xx
|
xx.xx
|
| Gross Profits |
xx.xx
|
xx.xx
|
xx.xx
|
| Total Expenses |
xx.xx
|
xx.xx
|
xx.xx
|
| Net Before Tax |
xx.xx
|
xx.xx
|
xx.xx
|
| Owner's Salary |
xx.xx
|
xx.xx
|
xx.xx
|
| Fringe Benefits |
xx.xx
|
xx.xx
|
xx.xx
|
| Interest Expenses |
xx.xx
|
xx.xx
|
xx.xx
|
| Depreciation |
xx.xx
|
xx.xx
|
xx.xx
|
| Other |
xx.xx
|
xx.xx
|
xx.xx
|
| Total Owner
Benefit |
xx.xx
|
xx.xx
|
xx.xx
|
Sell
Your Business Tips, Hints & Techniques:
Enter
your name & e-mail address below and each week I'll send
you detailed tips, facts, resources & ideas you can use
right away to help sell your business faster and for more money.
NEXT:
Step
2: Business Valuation And Developing A Price Range
The
Six Steps To Selling Your Business
Step
1 - Preparation Step
2 - Valuation Step
3 - Finding Buyers
Step 4 - Structure The
Sale Step 5 - Due
Diligence Step 6 - Closing
