4c) Selling Memorandum

Another key element in selling the business is producing a sales memorandum (sometimes known as a Selling Book) which basically is a detailed (but short) document that describes your business inside and out.

The main objective of a selling memorandum is to sell your business by building the interest of potential buyers. The memorandum should give enough information to eliminate a majority of the questions that potential buyers will have and consequently save you the time providing the answers in person.

You should put a lot of time and effort into producing the memorandum so that your business is given the best appraisal as possible and that it shouts out to potential buyers that this is the right business for them. Remember that this is one of the first (and main) sources of information that a potential buyer will receive and so it is important that you grip their interest within this document.

If you are using a business broker, they will have the responsibility of producing the memorandum with your assistance to make sure the information is relevant and appealing (using their own writing skills and experience). Alternatively, a solicitor can be used to help you produce such documentation.