The process of selling a business or divestment of any type of assets is an extremely long drawn out process that involves several players and can take a significant amount of time. This process can be more drawn about for specialized businesses like the Home Health Business.
Normally the process of divestment can involve the following steps:
(a) Developing a strategy for exiting the business
At this stage, you evaluate the present status of your business, your reasons for exiting the business and the possible consequences of exiting the business. You also evaluate the possible market value of the business and how it can be increased in tune with your plan of selling it. You may also determine if it is the best time for conducting the transaction.
(b) Preparing a Market Plan
The next step involves preparing a well-defined market plan for advertising the potential sale of your business. There should be a well-drawn out a strategy for the sale because if it is perceived as a distress sale, it might command lesser value. You also have to understand the possible buyers for the product and target them accordingly.
(c) Product in the market
At this stage, the product is formally launched into the market for the sale and the buyers and sellers are involved in potential negotiations for the sale. Confidentiality agreements may be signed with potential buyers to enable a thorough process of negotiation. Certain buyers may also seek on-site visits and evaluations.
(d) Selecting the best offer
At this stage, you receive all the offers and select the most favorable offer. You then sign a formal agreement with the proposed buyer to discuss exclusively on the nitty-gritty of the deal and move ahead for making any counter-offers if necessary. The buyer then undertakes necessary due diligence to complete the transaction.
(e) The signing of the Agreement
The final definitive agreement is signed after it is evaluated by attorneys from both sides. The timelines for the payments and the actual assets to be transferred are noted and the agreement is signed.
(f) Actual transfer and possible continued roles
Under some circumstances, the seller might have minor roles in the management for s short time until the buyer takes over full control. The seller may also have a guidance role considering his experience in the market.
No designation has been made by the Texas Board of Legal Specialization for a Certificate of Special Competence in this area.