Once the decision has been made to sell your business, it is not the time to relax. This is particularly true once you have a signed Offer. Most buyers say in their Offer or Purchase Agreement that is it is subject to there being no adverse changes in the business before closing. This would include a drop in sales or profits.
It is a normal for some business owners to stop marketing or paying attention to details once an offer is in hand or a contract is signed to sell the business, but it is important to remember that the process is not over until it is over. Many to most transactions are financed using SBA Guaranteed Loans. The bank is required by law to have a financial statement, accounts receivable and accounts payable aging records, and an updated Business Debt Schedule dated within 90 days of the loan closing. The bank and buyer will be looking for any adverse changes that would affect the future of the business.
This means it’s very important to keep all sales and marketing efforts going at full speed. Cutting back on sales and marketing to save money and increase your net proceeds before the sale goes through is not a smart move. Anything can happen before the closing, so you want to be sure you maintain the momentum.
As a seller or a buyer, if you would like a confidential conversation about how to prepare, please contact me on my cell, 954-579-4687, or by e-mail at firstname.lastname@example.org. My LinkedIn profile is at: http://www.linkedin.com/in/dolansales.