Sales Procedure – a Rough Outline
A very rough outline of the procedure is as follows:
- All parties sign confidentiality undertakings.
- We agree terms with the buyer.
- The buyer is provided with information about the practice for sale.
- The parties meet or speak about plans and proposals. Proposals can be as varied as the partners of the selling firm joining the buyer’s practice or the selling partners accepting a lump sum in cash to exit the business.
- A ‘heads of terms’ (also known as a HoT) is drafted and agreed. This sets out a timetable for the acquisition and specifies who does what and when. It is rarely legally binding – just an outline of the intentions of both parties.
- A deal is reached and completion takes place. The buyer pays us an introduction fee – this varies according to the sale/purchase in question.