How to Sell a Small Business - Why you need a Small Business Selling Memorandum

A small business selling memorandum is also called an Information Memorandum and is used to present the business buyer with a overview of your small business.

It is a business selling tool, providing answers to some of the basic questions business buyers usually have concerning the business.
So what goes into an information memorandum?

• The history and purpose of the business
• Outline the offer
• Information about its customers and the products or services it provides
• Industry information
• Future plans
• Financial information

Your aim is to give the prospective business buyer enough information to make the next step, so don’t forget to include a call to action - What do you want them to do next?

Small Business Selling - Important points:

1. Always have the potential business buyers sign a Confidentiality Agreement
2. When you complete your Information Memorandum I would suggest you then create a summarised version.  This is then used as the first response to the buyer’s enquiry
3. Limit the information you reveal at the initial stage of the process until you qualify the business buyers