How to Sell your Business
This document provides guidance on how to sell a company. It outlines the various options for finding buyers, from communities and events to investors and corporations. It emphasizes the importance of clearly communicating your company's vision, objectives, and values to potential buyers. The document then details the steps and documents involved, including an initial introduction, non-disclosure agreement, business profile, letter of intent, due diligence, terms sheet, share purchase agreement, and notary. It stresses the need to provide financial documents like balance sheets and income statements to buyers. The document concludes by noting that investors will evaluate the company's execution, product, and founder when considering an acquisition.
How to Sell your Business
- 1. How to Sell Your Company By Antonny Liem, CEO, MerahPutih Inc. Twitter: @antonnyliem MindTalk: @smutz
- 2. IPO The Capital Working Bank Ladder Loans Corporate VCs Classic VCs Angels & Small Venture Capital incubators Friends & Families Personal Savings/ Credit Card No Cash, Sweat
- 3. Why Sell? Expansion Competition Survival Bankruptcy Environment Exit
- 5. Find Buyer ? Where: ? Who: –Communities – Investor –Events – VC –Competition – Corporation ? How: ? What – Vision –Casual – Objectives –Reference – Personality –Don’t Sell, Tell – Values
- 6. Steps & Documents 1. Initial Introduction 2. Non Disclosure Agreement 3. Business Profile & Planning Presentation 4. Letter of Intent 5. Due Diligence: Finance, Legal, Tax, Operations audit 6. Terms Sheet 7. Share Purchase Agreement 8. Share Holder’s Agreement 9. Notary
- 7. Business Profile & Planning ? Who’s the Founder(s) ? What is your value? ? How does your business run? ? SWOT Analysis ? Current Financials: Balance Sheet, Income Statement, Cash Report ? Business Forecast: Future planning, Financial Planning, Expansion
- 8. Pricing and Negotiation ? Cash vs Bonds ? Common stocks ? Preferred stocks ? Convertible Loan ? First Right of Refusal ? Tag Along ? Voting ? Minority Protection ? Board Membership ? Employment Contract
- 12. Investors: What We See? Execution Product Founder
- 13. BUILT TO LAST, NOT BUILT TO SELL.
- 14. “A million dollar is not cool. You know what’s cool? One billion dollar.” Sean Parker’s dialogue to Mark Zuckerberg on “The Social Network” movie