Chaynuk services business brokerage offers Business Brokerage that involves a business broker who assist the small or large business owners. Pakistan has seen influx of technology and sharp rise of small businesses. However, at some point, these business owners will sell and merge their business operation with another business.
Business Brokerage Services Steps
- Non-Disclosure Agreement (NDA): Business secrets are important. NDA helps to secure that data will not leak and enforces confidentiality of the business.
- Determine Market Value: Assist the client in determining a possible business sale price.
- Marketing Plan: Prepare a marketing document or a company information memorandum.
- Qualify Buyers: Search for potential buyers.
- Closing Business Deals: Coordinate communication and oversee the overall deal.
Buyer Due Diligence Chaynuk Services Business Brokerage
There is no fix answer to the due diligence. A buyer has to think from every angle to purchase the business. A buyer not only analyzing at the current financial documents; they foresee the future as well. Usually, it is an assumption that when a business is not doing good financially no one will purchase the business. This is not the case all the time. If a seller is in loss; they actually helped the company grow and increased the market name.
- Shop the marketplace: don’t be focus on just one business to buy. If you have funds, make sure you understand the business operations and how much will it cost. Sometimes, there are hidden cost that buyers have to search.
- Do your homework: Can you actually buy it? Do you have enough capital to cover the costs?
- Search for multiple business bids: If you would like to go in a single venture; you need to see search several businesses to make an informed decision. A buyer has to self-educate. A buyer tries to get as much information as they can for several businesses.
- Conduct several appraisals: A buyer need to appraise from different appraisal companies to actually understand the market price.
- Business inspection: This is a simple step a buyer can do or can hire someone to do it. Check for government and tax registration documents, check premises if there is any. Ask seller for sales documents, bank documents. Make sure there are no seller traps. A buyer can conduct employee interviews as well.
- Insurance appraisals: Small or bug business; all need insurance to conduct smooth operations.
- Search and confirm business documents: Ask seller to provide documents that can be verify of its legality.
- Consult business lawyers: You need lawyers and business brokers and due diligence team to have a peace of mind. The peace of mind can come is by checking legal documents. As a seller, keep in mind, any thing can go wrong in the business deal.
- Ask an expert: Chaynuk.com is always available to conduct Buyer Due Diligence. Please contact us for more information.
Seller Due Diligence Chaynuk Services
Seller due diligence is some what different than buyer due diligence. One has to understand that sellers have emotional attachment to their business. They will only sell when it is deemed necessary or in some financial turmoil. Every situation is unique for the seller and buyer. Sellers will have several questions from a buyer.
- Check on buyer’s business and personal reputation.
- Check on buyer’s business bank statements of three or five years.
- Letter of references from buyer’s banks, investment advisors, customers and suppliers.
- Previous acquisitions information of past three years.
- Does buyer has any litigation?
- Does the buyer has any limitations, restrictions, suspensions, sanctions, imposed administrative limitations?
- Is union involved?
- Buyer intention of retention of employees, maintaining existing fringe benefits, i.e., health, medical insurance, vacation, and sick pay policies.
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