Elementary Steps to Selling
How does a business get listed with Fortune Real Estate? In general, it goes like this.
- Visit with Rob Smith to discuss your options.
- Sign a Listing Agreement.
- Provide Fortune Real Estate with as much as you can about your business, promptly (a checklist will be provided), as quickly as possible.
- Review the online listing when Fortune Real Estate has prepared it, ensuring it properly represents your business to prospective buyers.
- Be responsive to our scheduling requests for tours with our prospective buyers.
- Be punctual, open-minded, and helpful during onsite tours and requests for more information.
- Be responsive in a timely manner when we forward a Proposal to Purchase. It’s possible the proposal won’t meet your expectations, especially on the first submission, but understand that the prospective buyer is expecting a response, even if it’s a flat-out rejection. The more willing you are to work with a buyer, such as countering the offer, the more likely you will eventually reach a mutually agreeable plan. Rob can assist you in analyzing this. Some people will take less if the closing date is extended, thereby enabling them to earn more funds before the closing date. Each property and each offer is unique and should be considered from different angles before making a decision. (For a successful sale to occur, the buyer and seller cycle through this process until an agreement is reached.)
- Work agreeably during the buyer’s due diligence process. Allow inspections to occur. Provide the details which are outlined in the agreement (perhaps site plans, data from your client database, etc.).
- Continue operations and maintenance as though nothing was being sold.
- During the due diligence process, both parties adhere to the outlined details of the agreement. When an issue is discovered, both parties must reach a mutual agreement on how to proceed (such as something being found to be out of compliance). Will the seller bring it into code? Or will the price be reduced? Or the time extended? Or will the agreement be deemed null and void?
- When all items have been successfully reviewed and agreed upon, and the financing has been lined up, a ‘closing’ occurs which then legally, financially and physically turns the business over to the buyer.
- The day of closing typically is defined in the agreement as being owned by the buyer. As of midnight on the day the new owners take control:
- The new business owner then implements their business plan, using their business accounts (bank accounts, credit accounts, merchant account, utility accounts, insurance policies, etc.).
- The seller then begins closing the former credit accounts, merchant account, utility accounts, insurance policies, employee tax accounts, etc., ensuring all debts are paid in full.
For more information on buying or listing an income-producing investment property, please contact Fortune Real Estate.