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Step-By-Step Buying/Selling Procedure Below you will find our step-by-step guide to the buying/selling process. After reading this description, many of the questions you may have are answered on our FAQ page. If you have a question or concern that is not addressed on our Website, feel free to CONTACT US and one of our Strip Club Brokers will be happy to assist you.
1. Business Evaluation – What is my strip club worth? Determining the fair market value of your strip club is an involved procedure, which takes many variables into account. Proper consideration must be given to your club’s strengths, assets, historical financial performance and projections, along with the many intangibles. Whenever possible, purchase price comparisons should be made with similar clubs that have been recently sold. Overpricing, as well as under pricing, must be avoided in order to ensure reaching the correct buyers and marketplace.
2. Client Interview – At Strip Club Brokers, we need to determine your objectives and collect all pertinent information. For sellers, we compile a list of information on all aspects of your club. Proper preparation is crucial for the best presentation of your business and is also the first step needed to gauge the level of interest from potential buyers.
3. Value Proposition Strategy – The business must be properly packaged with all applicable records and facts organized and documented. This ensures presentation in the most favorable light, while providing the acquirer with a concrete document to follow and review. This package educates buyers on the many intangibles in your club, hence raising the perceived value to the acquirer. These intangibles may include name recognition, market niche, vendor relationships, operation and production systems, distribution channels, customer loyalty and trained and skilled employees, among others.
4. Marketing and Advertising Strategy – There are many channels that Strip Club Brokers can utilize to aid in selling your business. This includes our own database of qualified and interested buyers. We also help determine the approach and level of confidentiality needed during the sales process to help guard against your competitors, employees, vendors and customers ever finding out about the pending sale of your strip club.
5. Screening Potential Buyers – Pre-qualification involves fielding all telephone and e-mail responses, answering initial questions and ascertaining their interest level, management skills, cultural fit and ability to meet the financial requirements of the transaction, as well as getting signed non-disclosure agreements (to further maintain the confidentiality for all parties, the buyer must agree to financial disclosure and confidentiality rules). Then, Strip Club Brokers gains the assurance that the buyer is committed to the process of purchasing a business at price and terms consistent with the marketplace.
6. Presentation and Review – Strip Club Brokers provides the potential buyer with a company information package we have put together and presents the club’s potential for growth and market opportunity. This will also involve answering numerous questions and possibly setting up a conference call with all parties.
7. Negotiations and Screening – Strip Club Brokers offers skilled negotiation to resolve all issues as they arise and control all aspects of the process until a resolution is reached.
8. Offer to Purchase/LOI – The buyer prepares a Letter of Intent (LOI) in order to submit a formal offer to purchase to the seller, along with any contingences. We present the offer to the seller and answer any questions regarding the offer.
9. Offer Acceptance or Counter – The seller accepts the offer as written or responds with a counter offer. If accepted, a deposit is required from the buyer to take the listing “off the market” and begin due diligence.
10. Due Diligence – The offer is usually contingent upon the buyer’s professionals verifying the accuracy of the seller’s financial and operational representations. The buyer begins the process of due diligence and inspects detailed business information. This process also involves managing and settling all contingencies – all contingencies are removed from the Offer to Purchase/LOI.
11. Closing – This is the point at which you can be assured that you have realized your goal. Transfer of funds is completed and the sale process is ended.
12. Transition Period – This typically involves a period of cooperation in which the seller assists the buyer in effectuating a “seamless” transition. This includes transferring of key relationships and proprietary information needed to successfully operate the business. This is a very important piece of the entire process and the time required varies from business to business and market to market