Step #3 to Preparing Your Business for Sale
Write your Confidential Information Memorandum
The next step to preparing your business for sale is to write your business memorandum. This is the book report of your business. The company’s history/overview and claim to fame. Tell the story of how your grandpa started this business when he first came to the states. And how your dad took it to the next level, and all the growth it’s enjoyed under your leadership. Or how you pivoted during the pandemic and found even better ways to serve your clients. Talk about how most of your original team is still with you and the ways you’ve supported your community through different projects. A few key photos can help bring it all to life.
In addition to the feel good stories and pics, your memorandum should include details of the business, basic financial information, and growth stats from the industry. Spell out opportunities yet to be leveraged and who your business may be a good fit for.
Contact information, assets included in the sale, and of course the asking price should each be provided.
Enjoy the basic, but silly, Confidential Information Memorandum outline that follows!
Italian Stallion Pizza, Inc.
Confidential Information Memorandum
(To be distributed after signed non disclosure agreement)
Buy a slice of the good life! (Catchy Phrase)
Your favorite bar food can also be your profitable business!
Excellent source for content creation. (A few reasons to buy this business)
(Cover Photo)
This 60+ year old pizza pub is located in Northern Indiana. It has supported three generations of families but is now available due to retirement. This lucrative business can remain a quaint neighborhood pub providing a great lifestyle or you can take it to the next level by adding delivery and even franchising the concept. (Business Summary)
(Photo 2)
The pizzas produced by Italian Stallion are not your run of the mill pre-made crust pizzas. As a body builder, Sylvester created a pizza that helps build muscles, burn fat and tastes like you’re in Italy. The soups, dressings and of course the sauces are all homemade, from Grandma Sly's own recipes. The sale includes numerous successfully defended trademarks and negotiated royalties.
If anything good came from the pandemic, it was our renewed interest in food, all things homemade, spending time with friends. Industry experts predict the global market for pub food will grow from the 2020 level of US$518 billion to US$788.4 billion by 2027. Pizza is specifically are expecting a 4.7% revenue growth over the next 5 years.
Italian Stallion currently has a catering division contracted with approximately 6 local corporations, over 60 US pot dealers in total and 1 Canadian dealer. (Business details and claim to fame)
(Photo 3)
Details
Asking Price: $1,200,000
Average Cash Flow: $400,000
Average Gross Revenue: $1,000,000
FFE: $100,000
Real Estate: included
Inventory: $20,000
Financial Summary
2022 2021 2020 2019
Sales
Profit
Owner Comp
Opportunities
• A wonderful lifestyle business encompassing your favorite hobby
• A perfect add-on to your existing food business
• Perfect opportunity to add content creation. Great for videos and social media posts
• Adding complementary merchandise such as T-shirts and coffee mugs
• Automation can be added to increase production/reduce costs
• Perfect chance to franchise this concept
Support and Training:
• Owner is willing to train and support, terms negotiable
Included in the Sale
• Inventory-raw materials and supplies approx. $20,000
• Oven, fans, cooling systems, dough mixer-approx. value $100,000
• 2 domain names/websites
• 20,000+ email addresses
• 5 successfully defended trademarks
• Existing royalty agreement
• Pages and pages of photo testimonials
(Photo 4)
Domains Included
www.ItalianStallionPizza.com
Staffing
• 10 part time employees
• 1 full time manager
• 2 owners
Owner:
Sylvester Stallone
Contact Details:
555-555-5555
Sly@ItalianStallionPizza.com
Next time, we'll discuss how to clean up and organize your bookkeeping and financial statements to prepare for due diligence.
