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An Offering Prospectus is a detailed presentation that discloses the business and gives full financial information. It is provided by the seller to serious buyers only. It gives buyers the opportunity to fully analyze the opportunity and it gives them a presentation to show their accountant, advisors and lenders. Its main purpose is to present the necessary information that will enable a buyer to make a decision.
When is an Offering Prospectus given to a buyer?
- After they have reviewed the Company Profile
- After they have signed a Confidentiality Agreement
- After they have submitted a Confidential Buyer Profile
- After they have submitted a Personal Financial Statement (Seller’s decision)
The Seller will give an Offering Prospectus to a qualified buyer at his own discretion when he is comfortable disclosing such information. He will send it by mail before the first meeting with the buyer or at the end of the first meeting.
Here is what is included in an Offering Prospectus:
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• History and description of the business
• Record of Discretionary Income
• Profit and Loss Statements
• Balance Sheets
• Tax Returns
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• List of Assets
• Photos if helpful
• Company Sales Brochures if available
• Map to location
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