15 Steps to Sell Your Business | Savoir Business Sale

Complete Business Sale Process: 15 Key Steps

Savoir has developed a 15-step process for efficiently selling businesses, designed to help business owners successfully sell their companies at the highest possible price. Some of these steps can be performed simultaneously, so the entire process can be completed relatively quickly if both the buyer and seller cooperate actively and complete their tasks promptly.

In fact, from the moment we initiate the business sale process, we are typically able to reach step 9—introducing a screened and qualified buyer to the seller—within 1 to 8 weeks.

Throughout the process, experienced business consultants will guide you to ensure that every step proceeds smoothly, allowing you to complete the sale of your business with peace of mind and confidence.

You can continue reading the detailed instructions below to learn about the specifics of the entire process.

Step 1: Confidential Consultation – Starting Your Business Sale Journey

Before officially selling their businesses, many business owners ask themselves, "Is now a good time to exit?" Savoir offers free and strictly confidential one-on-one consultations, allowing you to understand the feasibility and potential value of selling your business without making a final decision.

This step doesn't necessarily mean you've already decided to sell; rather, it's an exploratory exchange. Through a brief consultation, we'll gain an initial understanding of your business and provide an estimated market price range to help you determine if it's worthwhile to plan your next steps.

In confidentiality consultations, we typically discuss the following issues with you:

What industry does your company belong to?
Who are the main customer groups? Are they concentrated in one group?
What is the number of employees and the team structure?
What role do you play in the company?
What is the company's annual revenue? What is its net profit?
Is the current business growing, declining, or remaining stable?
What are your reasons for considering selling? (Retirement, immigration, health, shareholder disagreements, business transformation, etc.)
Is there a single customer whose revenue accounts for more than 25%?

This information will help us assess the market's potential appeal to your business from a buyer's perspective and provide an initial price estimate. If you deem the assessment reasonable, we can then arrange a face-to-face or online meeting to move to the next stage.

We understand that price is not the only determining factor. If you are not in a hurry to sell and are satisfied with your current profits, it may be better to postpone the sale. However, if you have a clear motivation—such as retirement, family reasons, partnership disputes, or a desire to cash out and transition to a new business—then you may be at a stage where it is appropriate to initiate the sale process.

It's worth noting that the entire sale process, from initiation to completion, typically takes anywhere from 3 to 12 months. We will provide full assistance throughout the process, including valuation, packaging, promotion, buyer screening, negotiation, and closing.

During the initial confidential consultation, SAIF will also provide you with a suggested price range. If you wish to further refine your pricing strategy, we will assist you in reviewing your financial documents and conducting a more in-depth evaluation in the next stage.

To schedule a confidential consultation, please click "Book Now" to begin a professional dialogue with SAIF about your future.

Your information will be kept strictly confidential, and the entire process is risk-free and stress-free.

Step Two: Reviewing Financial Information—A Key Step in Assessing Business Value

Once you decide to proceed with the sale of your business, Savoir will assist you in conducting a more accurate valuation of your business, with financial data serving as the core basis for the assessment.

We fully understand the sensitivity and importance of confidentiality regarding financial information. Therefore, before you provide any information, SAIF will sign a formal confidentiality agreement (NDA) with you to ensure that all information is used internally only and is strictly protected and will not be disclosed to any unauthorized third party.

After obtaining your authorization, we will request the following basic financial information from you:

Tax returns for the past three years
Profit and Loss Statement (YTD) for the year to date
A business owner's income includes a full picture of their earnings, such as salary, bonuses, benefits, allowances, and net profit.

We will conduct a comprehensive analysis of the company's revenue and profit trends, assess its growth potential and risk factors, and further inform you:

The company's main revenue structure and gross profit margin
Are there seasonal fluctuations?
Fixed expenses and adjustable expenses
Is there a sustainable or transferable source of profit?
Does the company rely on specific customers, suppliers, or employees?
The company's current management structure and operational dependencies

In addition, we will ask you to provide general information about the assets, including:

Valuation of inventory
The value of fixed assets such as equipment, furniture, vehicles, and technical systems
Description of intangible assets, such as brand, customer relationships, system processes, etc.

By analyzing this financial and operational data, SAIF will build a true business picture of your company. This will not only help us develop reasonable pricing recommendations for you, but also lay the foundation for subsequent buyer communication, due diligence, and negotiations.

Step 3: Provide a suggested retail price—Scientific pricing makes a good business more attractive.

After gaining a comprehensive understanding of your financial situation , Savoir will combine various information to provide you with a competitive suggested price. This step is crucial for subsequent buyer communication, marketing, and transaction negotiations.

In addition to financial data, we will also gain a deeper understanding of your company's operational characteristics and market advantages, including but not limited to:

Where does your business stand compared to your competitors?
What unique products, services, or operating models do you offer?
What growth opportunities are currently untapped for businesses?
What about soft power factors such as brand, location, team, and customer loyalty?

We will compare this "non-financial information" with past transaction cases of similar companies, and combine it with current market trends and buyer behavior patterns to set a reasonable market pricing range for you, that is, the range in which buyers are willing to pay.

Then, we will discuss with you whether this suggested price meets your expectations. If our suggested price range is roughly in line with your expectations, you can consider whether to proceed to the next stage of cooperation; if your expected price differs significantly from the market level, we will also provide honest feedback to avoid you wasting time on incorrect price expectations.

It's important to emphasize that every company is unique, but buyers often compare them to similar businesses during the evaluation process. Therefore, our pricing recommendations must not only reflect the company's unique value but also remain within the buyer's acceptable range to increase the chances of a sale.

At this stage, you will have two options:

Moving forward: If you agree with our assessed price, Savoir will invite you to sign an Exclusive Authority Agreement, officially launching the full-scale promotion and buyer connection process.
Decision postponed: If you believe the current timing or price is not yet right, you may choose to hold off and cooperate in the future. We always welcome your return.

Savoir adheres to a "pay-after-sale" principle, meaning we only charge a service fee after your business is successfully sold. Therefore, we place great importance on the feasibility of each collaboration, ensuring our pricing strategy is both fair and based on the actual likelihood of a successful transaction.

Step 4: Create marketing materials—highlight key features, attract buyers, and protect confidentiality.

After completing an initial assessment and confirming our intention to cooperate, Savoir will work to develop a professional and confidential marketing package for your company to attract suitable potential buyers.

We usually create two key documents:

1. Overview (Teaser) — A confidential "one-page introduction"

This is a concise promotional document that does not include a company name or specific address. It aims to provide an overview of your business, such as industry, type of business, customer base, revenue range, geographic location (general area only), and company strengths. The teaser is primarily intended to attract initial interest while ensuring your identity remains undisclosed until a confidentiality agreement is signed.

The document is only one page long, written in a concise and engaging style, with the goal of piquing the interest of potential buyers without revealing core information.

You can view actual Teaser case studies on the "Businesses for Sale" page of our official website.

2. Confidential Information Memorandum (CIM) – Gaining Deeper Understanding of the Enterprise

Once a potential buyer is interested in Teaser, they must first sign a Non-Disclosure Agreement (NDA) and provide us with their background information, business experience, financial capabilities, etc. Once a buyer passes the initial screening, we will provide them with a second, more detailed document—a Confidential Information Memorandum (CIM).

A CIM is a comprehensive marketing document that introduces your business, including but not limited to:

Corporate History and Structure
Financial Overview and Growth Trends
Product or service content
Major Customers and Market Distribution
Employee and Management Introduction
Competitive advantages and potential risks
Portability and expansion potential

This document not only helps buyers make assessments and judgments, but also enhances their confidence in the company and prepares them for subsequent due diligence and negotiations.

Collaboration is key: We write, you participate!

While both documents will be prepared by Savoir's professional team, we still highly value your opinions and participation. After all, you know your company best, and our goal is to showcase your company's attractiveness and actual value to the greatest extent possible while protecting your privacy.

During the drafting process, we will communicate with you repeatedly to confirm the expression of key information, ensuring that the content is accurate, truthful, and marketing-appealing. Especially in the Teaser file, we will skillfully balance the relationship between "providing sufficient information" and "maintaining anonymity," ensuring that the company remains protected throughout the market exposure process.

As for CIM, it is a dynamic document that can be continuously improved based on buyer questions. We will gradually supplement the information to address the most pressing concerns of buyers, making the data more closely aligned with real transaction needs.

Marketing materials are the "door opener" for attracting high-quality buyers and the first bridge to closing a deal. Savoir , with years of experience in business packaging, will tailor professional and strategic promotional copy for your company, helping you stand out in the market.

Step 5: Promote and market your business—precisely reach high-quality buyers and fully unleash market potential.

After completing your company's packaging materials, Savoir will launch a comprehensive and targeted promotion and marketing plan aimed at attracting high-quality potential buyers for your company and ensuring that the entire sales process is efficient, confidential, and accurate.

We will publish the company profile (Teaser) on several well-known business trading platforms. Throughout the marketing process, SAIF will adhere to a strict confidentiality mechanism and will not disclose the company name or specific address in public channels, ensuring that your existing customers, employees, suppliers and competitors are unaware that the sale is taking place.

Our promotion strategy combines three dimensions: manual screening, data intelligence, and industry matching, ensuring that your company information is accurately delivered to the most suitable potential buyers, thereby improving transaction success rate and quote quality.

Savoir not only helps you find buyers, but also helps you find "the right buyers".

Step 6: Contact buyers and sign confidentiality agreements — rigorous screening, precise matching, and guaranteed information security.

After completing corporate promotion and market exposure, Savoir will begin connecting with potential buyers from multiple channels. Thanks to our long-standing industry focus and powerful promotional channels, we receive weekly inquiries from buyers across various industries expressing interest in purchasing from our clients.

However, at Savoir, we will never disclose any detailed information about your company without a signed confidentiality agreement. We always prioritize your company's privacy and ensure that employees, customers, suppliers, and competitors are not informed of any sale without authorization.

The confidentiality mechanism process is as follows:

Initial contact with potential buyers: Based on their industry and investment interests, we send them a company teaser. This document does not reveal the company name, address, or other identifiable information.
Confirm buyer's intentions and background: If the buyer shows strong interest in the company, we will ask them to fill out a background information form, including their professional experience, industry experience, source of investment funds, purpose of purchasing the company, etc.
Signing a formal confidentiality agreement (NDA): Savoir will only provide the next step, a confidential information memorandum (CIM), which contains detailed data and operational information about the company, after the buyer signs a legally binding confidentiality agreement.
Initial screening of qualified buyers: We will comprehensively consider the buyers' financial capabilities, industry relevance, experience background, and purchasing motivation to select a high-quality group of buyers who are both interested and capable, laying the foundation for further in-depth communication.

This tiered, step-by-step screening mechanism not only protects your company's business privacy but also greatly improves the success rate and efficiency of transactions. We do not pursue "indiscriminate information exposure," but rather find buyers who are truly suitable to take over your business through "precise matching + confidential communication."

The higher the quality of buyers and the more orderly the information disclosure, the more your company's value can be truly seen.

Step 7: Provide detailed information to potential buyers—carefully select buyers, make precise connections, and find the right successor.

Finding the "ideal buyer" in the process of selling a business often requires time and patience. Savoir understands that a successful transaction is not just about price matching, but also about matching the right people—we look for not just the highest bidders, but the people who are truly suitable to take over your business.

What is an "ideal buyer"? An ideal buyer typically possesses the following qualities:

Have an interest in or relevant experience in your industry
Possess the ability and resources to take over and continue operating the business.
Having sufficient funds or financing channels
Recognize the company's existing business model or its ability to optimize and upgrade it.
They agree with the company culture and customer values and are willing to make a smooth transition.

Whether they are suitable often depends on several factors, such as:

Location of the business (whether the buyer wishes to enter this regional market)
Product/service type (does it align with its expansion strategy?)
Operating model (is it suitable for integrating with the buyer's existing resources?)
Team structure and portability (whether it depends on the founder)

How does Savoir evaluate and screen buyers?

After potential buyers sign a confidentiality agreement and submit their background information, we conduct an in-depth analysis and cross-comparison of each buyer's intentions and qualifications. We not only examine their financial capabilities, but also assess whether their experience matches your business, whether they have a clear motivation to take over, and whether they can maintain the healthy operation of your business.

We will only provide a buyer with a Confidential Memorandum of Information (CIM) containing key information such as financial data, operational status, and market advantages once we confirm that the buyer has “high matching potential” across multiple dimensions.

We will not blindly send company details to multiple buyers at once, but will proceed gradually and systematically, protecting information while improving communication efficiency and quality.

Finding the right people is more important than closing the deal quickly.

Throughout the process, we maintain constant communication with you, reporting buyer feedback, offering suggestions, and promptly optimizing our communication strategies based on market reactions. Our goal is not "to sell as quickly as possible," but rather "to hand over the business to the right person in the right way and achieve the desired transaction outcome."

Savoir believes that one buyer with genuine willingness, ability, and suitability is more worth waiting for and investing in than ten unsuitable buyers.

Step 8: Initial Q&A with potential buyers—In-depth communication, screening motivations, and assessing match.

Once a potential buyer passes our initial eligibility screening and expresses strong interest in your company, Savoir will arrange an Initial Q&A session with that buyer, which is a crucial step in advancing the transaction.

The purpose of the initial Q&A is not just to answer questions, but also to "get to know" the buyer. In this step, we not only help buyers answer basic questions about your company, but also gain a deeper understanding of the following through communication:

What are their motivations for the acquisition? Is it to expand existing businesses? Transform? Invest? Or create their own employment?
What is their timeline? Do they hope to acquire the company as soon as possible, or are they in a long-term wait-and-see phase?
Do they truly understand your company's industry and operating model?
Do they express a strong interest in aligning with your business? Or are they just making general inquiries to one of many companies?

We also analyze their tone of voice, questioning style, focus, and other details to gain insight into their sincerity in the acquisition, their level of professionalism, and their decision-making style.

At the same time, we will use our experience to help buyers understand your company's advantages as much as possible, patiently answer their reasonable questions, and appropriately guide them to view the company from the perspective of value rather than price.

We won't rush to let buyers contact you; instead, we'll screen potential buyers for you first. Only after confirming that a buyer's motivation, time, capabilities, and interests are a good fit for your company will we provide feedback on that buyer and suggest whether to proceed with further contact or a meeting.

This not only saves you valuable time but also protects your privacy and control in the initial stages. We understand that for many Chinese business owners, information leaks and unnecessary disruptions can negatively impact employees, customers, or business operations, so we always exercise extreme caution.

Professional communication, precise matchmaking

Savoir's team is not only an information transmitter, but also a professional communication bridge and judgment advisor. We maintain a neutral and professional stance, representing sellers to protect information while respecting buyers' inquiries, ensuring efficient, valuable, and transaction-driving communication.

Once a buyer is assessed as a "high-potential successor," we will promptly communicate our recommendations to you and prepare for further in-depth discussions or face-to-face negotiations.

Step 9: Arrange a meeting between the buyer and seller—to build trust and mutual understanding, paving the way for the transaction.

Once potential buyers have signed a confidentiality agreement and completed the initial Q&A session, if they show further interest, Savoir will assist in arranging a formal meeting or telephone conversation coordinated by us, allowing you to have your first direct contact with the buyer.

Preparations before the meeting

Before the formal meeting, we will provide you with a detailed introduction to the buyer's background information, including:

Their professional experience and industry expertise
Why are they interested in your business?
Their sources of funding and acquisition objectives
Their general ideas for the future development of the company

We will also communicate your core information and meeting notes to the buyer in advance to ensure that communication between both parties is targeted, respectful, professional and orderly.

A phone call or a meeting presents an important opportunity for "two-way selection".

This is not only an opportunity for buyers to further evaluate whether the company is a good fit for them, but also a crucial moment for you to determine whether "this person is suitable to take over my company".

You can get a sense of whether the other party is responsible, respects your efforts, is sincere, and has the ability to sustain the company's development through conversation.

We will do our best to screen potential buyers who you may feel comfortable and trust, but ultimately it is up to you to decide whether to proceed. We are always on your side, offering advice but not pressure.

We suggest you approach buyers with an open, honest, and professional attitude. During the meeting, we recommend that you:

To be honest about the company's current situation, including its strengths and areas for improvement.
Actively share the company's growth story and market opportunities.
Encourage buyers to consider: "What new possibilities could you bring if you took over?"
Introduce key team members, customer structure, and supply chain relationships.
Clearly explain your current role in the company and your future transition arrangements (such as willingness to assist with training, remain as a short-term consultant, etc.).

Although buyers may already know a lot of information from previous documents, they usually want a more intuitive feel and details from the business owner in person, which will greatly influence whether they are willing to make an offer and at what price.

This is the seed of trust, and the starting point of a transaction.

A good meeting not only answers the buyer's questions but also builds initial trust between both parties. Savoir will provide full support and guidance to ensure the meeting is both authentic and efficient. Regardless of whether a deal is reached, we want you to feel respected, understood, and always in control.

Step 10: Buyers submit quotes – It's not just about price, but a competition of comprehensive transaction plans.

After you have completed the initial meeting with potential buyers and answered their key questions about your business, we will move on to the crucial next step: the pricing stage.

At this point, genuinely interested and capable buyers will begin preparing and submitting a formal written offer (usually called a Letter of Intent, or LOI), which includes several key transaction terms beyond just the price.

How do we handle buyer quotes?

As your representative and advisor, Savoir will assist you in fully understanding the details, potential value, and execution risks of each quotation. During the quotation stage, we will:

Gather all offers: In most sales projects, our marketing strategies and buyer resources often enable us to secure multiple offers from buyers for our clients.
Item-by-item analysis: We not only analyze the quoted amount, but also evaluate each and every important transaction term, including the following:
- Settlement time (Does the buyer want to complete the transaction as soon as possible?)
- Due diligence requirements (scope, timing, transparency)
- Does it require financing? Has it already been approved?
- Transitional arrangements (Should the seller be required to assist with training or retain consultants?)
- Conditions and Buyer Exit Mechanism
Payment method (full payment at once, or installments/financing?)
Risk and Reliability Assessment: Based on our understanding of each buyer, we will also provide professional advice on their execution capabilities, creditworthiness, negotiation style, and other dimensions to help you determine the likelihood of them ultimately completing the transaction.

How can Savoir help you make informed choices?

While the quoted amount is important, an ideal deal also includes:

Whether the transaction process proceeds smoothly and in a controllable manner.
Does the structure facilitate a smooth exit and reduce legal and financial risks?
Do you respect your expectations for the company's future?
Can it have a positive impact on employees, customers, and brand continuity?

We will compile all quotes into a clear comparative analysis report and discuss the advantages and disadvantages with you item by item to help you make a rational and reassuring decision.

You still have full decision-making power.

Savoir 's role is to provide you with comprehensive support, information interpretation, and professional advice. Ultimately, whether to accept the offer and who to continue negotiations with is entirely up to you.

We always stand in your shoes and strive for the best possible transaction outcome, not just to close the deal as quickly as possible.

Step 11: Negotiating Price Terms — Precise negotiation to secure the most favorable deal for you.

After multiple buyers submit Letters of Intent (LOIs) expressing clear intention to acquire the company, the next step is to negotiate specific transaction terms. This step is the most critical and demanding stage in the entire company sale process, requiring the most professional judgment and negotiation skills.

It's not just about choosing the "highest bidder," but about finding the "optimal combination."

If you receive multiple offers, Savoir will carefully analyze them with you and may recommend focusing your efforts on in-depth negotiations with one or two of the most promising buyers. These buyers typically possess the following characteristics:

Clear source of funding
High trading intentions
Background that matches the company well
A flexible and pragmatic trading attitude

What are the core elements involved in the negotiations?

Price and Payment Method
- Is it a lump sum payment or installments?
- Does this involve loan financing? Who bears the risk?
Transitional arrangements
- Does the buyer want you to assist as an advisor for a few months?
- Should employee training or customer resource handover be required?
Scope and schedule of due diligence
- What documents and materials need to be reviewed?
- Will it involve access to employees, customers, or suppliers?
Details of the scope of the acquisition
- Is it an acquisition of the company's equity (the entire company) or just the assets?
- Are accounts receivable, accounts payable, and inventory included in the transaction?
- Are trademarks, software, patents, and equipment explicitly listed?
Terms and Conditions
- Are you required to sign a non-compete agreement?
- Are there any performance-based clauses or deferred payment conditions?

What are Savoir 's negotiating value?

As experienced business brokers, Savoir's team has assisted in processing hundreds of transaction offer letters and letters of intent, and is well aware of the business implications and potential risks behind different terms.

We don't just deliver information; we represent you, setting the pace, setting boundaries, and guiding negotiations to ensure the entire process is both efficient and balanced. Our goal is to help you:

Reduce transaction risk
Ensure fair pricing and reasonable terms
Give buyers confidence to complete the transaction, and give you confidence to exit with peace of mind.

Professional negotiation makes transactions smoother.

A transaction is not a one-time event, but rather a phased negotiation process. Through communication and adjustments during this phase, we can reach a mutually beneficial, risk-controlled, and executable transaction plan.

Step 12: Signing a Letter of Intent – Clarifying the willingness to cooperate and initiating the due diligence phase

After several rounds of negotiations, the buyer and seller reached a preliminary agreement on the price and key transaction terms. The next step is to formally sign the Letter of Intent (LOI).

Although this document is not equivalent to the final sales contract, it is an important legal document that marks the formal establishment of the cooperation intentions of both parties and paves the way for subsequent due diligence, contract drafting and delivery arrangements.

🖋️ What is a Letter of Intent?

A letter of intent is a non-binding (or partially binding) agreement that outlines the initial framework of a transaction between the parties, including:

Proposed acquisition price and payment method
Expected transaction structure (asset acquisition or equity acquisition)
Transitional arrangements and support methods
Expected timeline for transaction completion
Scope and duration of due diligence
Whether to grant the buyer exclusive negotiating rights (Exclusivity Clause)

The "starting line" for due diligence

In most cases, once a letter of intent is signed, the buyer will be granted a 60- to 90-day due diligence period. During this period, the buyer can comprehensively review information regarding the company's operations, finances, legal matters, taxation, human resources, contracts, supply chain, and other aspects.

As the seller, you need to cooperate by providing the required materials and answering related questions to ensure the smooth progress of the entire due diligence process.

Is there an "exclusive negotiation period"?

Letters of intent often stipulate that the buyer has an exclusive negotiation period during due diligence. This means that within the agreed timeframe:

The seller will not negotiate with other potential buyers or accept other offers.
Both parties will focus on advancing their cooperation.
Ensure that the buyer has reasonable expectations and confidence when investing time and resources in due diligence.

Of course, whether to grant exclusive rights and the duration can be negotiated and determined by SAIF with your assistance, ensuring that you can protect your own interests while also attracting buyers to invest seriously.

Savoir safeguards your every step of the way.

Signing a letter of intent is the most crucial step before the transaction officially commences. Savoir will assist you throughout the entire process:

Review and revision of the terms of the letter of intent
Coordinate with third-party professional advisors such as lawyers and accountants.
Communicate the timeline and cooperation details with the buyer.
Ensure you fully understand the content and that your rights and obligations are clearly defined.

Step 13: Due Diligence – Information Verification, Risk Control, and Preparation for Final Transaction

After signing the Letter of Intent (LOI), the sale of the company will officially enter the Due Diligence phase, which is the most important verification process for the buyer before deciding whether to ultimately purchase the company. SAIF will assist you throughout the entire process in preparing systematically, responding proactively, and maintaining the pace and fairness of the transaction.

What is due diligence?

The core purpose of due diligence is to ensure that the buyer confirms that your company's actual operations are consistent with the information previously provided, and to ensure that there are no hidden problems or risks that could affect future operations after the takeover.

Due diligence typically includes the following aspects:

Financial Information Review
- Review financial statements, tax returns, and profit and loss statements from recent years.
- Verify cash flow, liabilities, asset structure, and accounts receivable and payable.
- Analyze profit composition, gross profit margin changes, and key cost control points.
Legal Contracts and Liability Review
- The buyer's lawyer will review your contracts with suppliers, customers, employees, leases, intellectual property, etc.
- Assess whether there are any undisclosed legal disputes, potential litigation, or compliance risks.
Operational level verification
- Are customers overly reliant on us? Have we lost any major clients?
- Is there a problem of dependency on key employees? Are the employee contracts adequate?
- Can internal processes, technology systems, and inventory management be sustainably transferred?
Financing requirements (if any)
- If the buyer needs a bank loan to acquire the company, the bank will also require a series of due diligence documents, including financial, asset, and business risk reviews.
- We will also assist you in preparing documents that meet the bank's review standards.

Communication mechanism for due diligence

During due diligence, the buyer typically engages accountants and lawyers to raise a series of questions, which will be compiled and relayed to you through us ( SAIF ). We will assist you in organizing the materials and clarifying the logic of your responses to ensure:

Provide professional and logical answers to avoid confusion.
Authentic and complete materials enhance buyer trust.
Confidentiality and transaction pace are fully guaranteed.

We will act as a neutral coordinator to help you maintain the right balance and pace in your disclosures, showcasing your company's true value without easily exposing strategic weaknesses.

The key is not "perfection," but "acceptable reality."

Due diligence does not require that the company be free of problems, but rather that the buyer confirm that these problems are within their control and that they have solutions.

We will also remind you in advance which information might be sensitive points, help you prepare explanations or solutions, boost buyer confidence, and reduce variables in the transaction.

Step 14: Negotiate and sign the purchase agreement—legal confirmation, locking in transaction terms, and moving towards final closing.

After the due diligence is successfully completed, the company sale process enters the stage of signing formal legal documents. The core of this stage is to negotiate and finalize the Purchase Agreement, which is the legal basis of the entire transaction and also means that the buyer and seller are about to complete the final closing.

How is a purchase agreement generated?

Typically, the seller's lawyer drafts the initial draft of the contract and sends it to the buyer's lawyer for review.

Buyer's Lawyer's Committee:

Carefully verify that all terms in the contract are consistent with the previously negotiated terms.
Suggestions for modification or supplementary clauses
Communicate with the buyer about potential legal risks and performance requirements.

This process may involve repeated negotiations and adjustments to the details of the agreement, for example:

Precise description of price and payment method
Conditions for asset or equity transfer
Accounts receivable and payable, inventory, and employee handling methods
Seller's Assistance During the Transition Period: Time and Responsibilities
Duration and scope of non-compete or confidentiality obligations
If the transaction is not completed, the responsibilities and compensation mechanisms of both parties will be addressed.

The "Game" and "Balance" in Agreement Negotiation

During the contract negotiation phase, a tug-of-war often occurs between the lawyers of the buyer and seller. The buyer wants more secure terms, while the seller wants fewer constraints or liabilities.

This process of "giving and receiving" is normal and a sign that transactions are maturing.

SAIF 's key role: Overcoming the "legal deadlock" and moving the transaction forward.

If the lawyers for both parties are deadlocked on certain key terms, SAIF Partners will immediately intervene to mediate. We will:

Arrange for the buyer, seller, and their lawyers to participate in a three-party or multi-party conference call/online meeting.
To understand the core demands of both sides and find a compromise solution.
Provide industry experience and reference cases to help both parties make reasonable judgments.
Guide both parties to focus on the transaction objectives and avoid missing opportunities due to details.

With our extensive experience in business transactions, we understand which terms are universally applicable in the industry, what buyers care about, and how sellers can protect their interests. This allows us to build bridges of communication between the two parties and help them reach an agreement based on trust.

Entering the final stage: preparing for the closing date.

Once all terms of the purchase agreement are confirmed and signed by both the buyer and seller, a closing date can be set to prepare for business handover, fund settlement, and transfer procedures.

The quality of negotiations at this stage determines the smoothness and security of the transaction.

SAIF is not only a facilitator of business transactions, but also an expert in communication and coordination during your legal negotiations.

Step 15: Transaction and Handover – A successful conclusion, a smooth transition, and the beginning of a new chapter.

After due diligence, negotiation, and legal review, the sale of a company has finally reached its final stage – closing and transition.

Transaction signing and fund settlement

Typically, the buyer and seller will sign the "Enterprise Purchase Agreement" before the transaction is completed. However, some transactions are arranged to be completed on the same day as the transaction.

There are two ways to complete a transaction:

Offline on-site transactions
- The location is usually at the buyer's or seller's law firm.
- Representatives from both sides (including lawyers, agents, etc.) were present in person.
- Complete final document signing and data handover.
- The buyer pays the transaction amount via bank transfer, check, or third-party escrow account.
Virtual Closing
- Especially suitable for cross-city or cross-border transactions
- All contracts are completed through an electronic signature platform (such as DocuSign).
- Funds were transferred to the seller's account via wire transfer.
- Documents and asset information are transferred via cloud or encrypted methods.

Once the funds are received and the legal transfer is completed, the transaction is officially finalized, and the company's ownership is transferred to the buyer.

Congratulations on the successful transaction! Now entering the "handover period" support phase.

The transaction is not the end, but rather the beginning of the seller's transfer of operational control to the buyer. As stipulated in the letter of intent or purchase agreement, the seller will provide certain "transfer support" after the transaction to ensure a smooth transition for the company.

The handover period typically includes:

Introduce the company's daily operating procedures to the buyer.
Assist in becoming familiar with customer resources, products/services, supply chain, etc.
Employee team relationship maintenance and responsibility handover
Help handle important matters or unexpected problems during the transition period.

Flexible arrangements for the handover period

The handover time can be flexibly set according to the needs of both parties, with the following being common scenarios:

Short-term handover (a few days to several weeks): Suitable for companies with a clear business structure and extensive buyer experience.
Mid-term handover (1–3 months): This is relatively common and includes training, introducing customers and supply chain relationships, etc.
Long-term handover (6 months to over 1 year): This typically occurs in technology-driven companies or companies heavily reliant on the seller's personal experience, or when the buyer is a first-time entrepreneur.

If the handover period exceeds one month, both parties will usually negotiate compensation separately, based on the seller's working hours, intensity, and role. This arrangement might include:

Initially providing full-time assistance, gradually transitioning to part-time consulting.
Decreasing workload and salary structure over time
The seller acts as a "consultant" or "transition manager" and participates in the company's operations on a short-term basis.

Ultimately, once the buyer has mastered the operations, customers, and systems, the seller officially completes the "handover" and withdraws from the company's daily operations, while the buyer takes full control and embarks on a new business journey.

The company transfer process is now successfully completed!

SAIF Partners will be there for you throughout the entire process, from the initial assessment, negotiation, packaging, and promotion to the final negotiation, transaction, and handover, providing one-on-one support to ensure that you not only successfully sell your business but also complete the exit and succession with peace of mind.

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At Savoir, we are committed to providing our clients with the highest level of professional services and solutions.