The following is an edited excerpt from the book, Buying Out the Boss: The Successor’s Guide to Succession Planning, by Michael Vann and Kevin Vann.
Written By: Teresa Shefer- BusinessExit.com
Business owners who are considering exiting their businesses within the next 5 years should become acquainted with the Offering Memorandum. The OM, also known by other industry names, is a data rich marketing document designed to highlight your company’s positive attributes to a prospective buyer. Businesses are rarely sold without the exchange and review of the OM or a version of it.
Terry Shepherd, BusinessExit.com
Your business sale is imminent and due diligence is about to begin. For you to stay on after the transaction with either a continued stock interest, an earn out agreement based on reaching revenue milestones post transaction, or some other financial incentive, work is required from you and the buyer leading up to the sale, to make sure it is the right fit and to help ensure its success.