What are they? -- The Non-Disclosure Agreement (NDA):
The NDA is an agreement between the potential Buyer and Stony Hill (acting as Business Agent for the Seller). Some key terms in the NDA are :.
- Any business information we provide must be kept CONFIDENTIAL
- The Buyer must NOT CONTACT the Seller or his staff without permission,
- The Buyer has SUFFICIENT FUNDS to buy the business and agrees to provide documents to support this representation.
What are they? -- The Financial Statement:
The Financial Statement is an opportunity for the Buyer to demonstrate his financial where-with-all. It demonstrates to the Seller how the Buyer will fund the purchase of the business for sale.
Why are these forms important?
These forms are important to all three groups involved in selling a business, Sellers,Buyers and brokers. They allow the Seller and broker to gauge the quality of the Buyer before investing additional phone or face-to-face with the prospect. These forms should be treated as a job application:
- Read and understand the terms and conditions of the NDA, before signing it,
- Accurately, Completely and Legibly provide the information requested in the Financial Statement.
Just as buyers determine the value of a business from its financial statements, sellers evaluate buyers the same way. In our region, New Jersey, Delaware and Pennsylvania, quality businesses for sale always attract many Buyers. While Stony Hill will consider all potential applicants, we present only the most qualified Buyers to the Seller. Selling a business is a long and complicated process. Nobody wants to invest time and energy with a "window shopper" or "tire kicker". How the Buyer completes these forms, including any back-up documentation provided, speaks volumes about the seriousness of Buyer interest.