Page 20 - SEll Your Business Booklet

STEP 7. Sale and Purchase Agreement
Negotiating the sale
of your business
Earning a buyer’s trust and
confidence is critical to success.
Difficult questions will be asked and
you must be prepared with honest,
realistic answers.
$3B+
worth of businesses sold:
we know how to put together
an agreement that works.
18 SELL Y OUR BUSINESS, SMAR TER
Once the Confidentiality giving the buyer a specified
Agreement has been signed, a time within which to investigate
potential buyer will look closely
and confirm that the details
at your IM and consult with their supplied to them is accurate.
financial and legal advisors. At this They will also wish to review
stage they’re evaluating whether any other details that may have
the business suits their purpose, been previously withheld due
and are seeking more detailed to commercial sensitivity.
information.
Your LINK broker will liaise
Selected information is supplied between you and the buyer to
as determined by you, with facilitate agreement between
advice from your LINK broker. both parties.
This ensures that any commercially-
sensitive material is withheld Show me the money
until an offer is made and
progressed as part of the buyer’s Normally, the buyer pays a deposit
due diligence process. The buyer of 10% on signing the Agreement.
will also want to view the business This is safely lodged in a Trust
and meet with you. Account until the Agreement
becomes unconditional.
Provided the buyer has been
supplied with all the basic
information they need, your LINK
broker will work with the buyer
and their professional advisors in
preparing a Sale and Purchase
Agreement detailing the price,
terms and conditions of the offer.
The agreement will nearly always
include a due diligence clause,