To-buy-a-business proposal or a business purchase proposal is a proposal document that is prepared by a company for the client company. In this proposal, the company presents its offer to purchase the client company’s business.
The client company may want to sell its business for many reasons, such as:
When the business is not beneficial enough and selling it off is a better option, the client company may seek proposals from different companies and select the one that is most advantageous to them. Therefore, when a company is preparing the business purchase proposal, it should pay consideration to many points, such as:
If a company decides to choose a template for preparing its business purchase proposal, rather than designing itself from the scratch, it can easily download one and customize it, as per its requirements and the demands of the client. These needs and demands may vary from client to client which indicates that a proposal needs to be a customized one for every client, having varying details. However, at the same time, the general details that are included in all the business purchase proposals are the same, which include:
If the client finds the company’s proposal as worth accepting, it means that the company’s efforts in terms of cost and time have paid off. However, if the proposal gets rejected, not only the company has to suffer but it may have to prepare another proposal for some other client or seek other opportunities for investment.
New York, NY 40333
XYZ Enterprises Limited
38190 11th Ave.
New York City, NY
Dear Ms. Martha,
We are interested in negotiating an agreement for the purchase and acquisition of all the business assets, tangible and intangible, including furniture, fixture, and equipment, stock in trade, parts, and supplies, owned by you in connection with the pharmaceutical business of A-pharmaceuticals.
We have assembled a team of our senior management with an emphasis on the execution of this process successfully and efficiently. We also have a track record of successful completion of numerous strategic acquisitions over the past several years.
XYZ Enterprises Limited is one of the leading pharmaceutical distributors in the Country. We have global businesses that research, develop and manufacture advanced and innovative medicines, vaccinations, and customer healthcare products. Over time, we achieved our goals and our partner and customer base grew extensively.
XYZ Enterprises Limited was founded in 1990. We aim to invest in the best possible system, infrastructure, and staff, to guarantee the most advanced and modern facilities.
The pharmaceutical industry plays a vital role in creating and developing medicines to treat diseases and enhance the quality of life of people. The factors that influence the growth in the health care market include political changes, economic and social changes, legal, technological and environmental changes. Some factors that are boosting healthcare market growth are:
Today, pharmaceutical drugs have to deal with a huge number of laws and regulations. This affects the size and growth rate of the market. Together with the high research & development costs involved in creating new drug solutions, these act as a hurdle for small pharmaceutical companies. Our company is fully automated, with a centralized computer database and meets global standards to produce the highest quality products.
Our company looks forward to several opportunities in the future. We truly believe in creating respectable relationships with our working staff, our partners, and our customers. This motivates us to find ways to exceed their expectations and expand our business. At the end of the fiscal year 2018, the Company’s net equity is estimated to be $9,610,107/-.
The proposed purchase price for A-Pharmaceuticals is $5,000,000/-, with $1,500,000/- to be paid at the closing. Transaction and closing fees of $15,000/- have been estimated, resulting in a total purchase cost of $5,015,000/- for the Company. We anticipate the amount of the first installment to be paid in cash and the closing of the deal will be conditional to 90% of A-Pharmaceutical employees accepting to work with us for the first 3 months.
Our company would like you to allow us to complete our examination of your financial, accounting, and business records; also, the contracts and other legal documents. We have assembled a team of senior management to focus on the successful execution of this process.
We are keen to complete the acquisition process as quickly as possible, so there is less delay in productivity and the inevitable demoralization that occurs while the change is underway. We would attempt to complete and get the Purchase Agreement signed before August 2019.
Assets Acquisition: Acquire A-pharmaceutical’s right to all of its property rights and tangible assets.
Employees: Staff pharmacists and technicians continue working for us.
Communications: Patients and other health professionals associated with A-pharmaceuticals, if need to contact the pharmacy, reach us with minimal effort. Our telephone number and fax number will be provided to them.
Pharmacy Management System: Get access to prescription records in electronic format so that arrangements can be made to a pharmacy management system to facilitate integration with our health care systems.
Inventory: Associated inventory will be acquired.
Real estate: Transfer of lease will be made. This lease will only be for a limited time while we build out our own location.
Valuation: Company is valued based on the value of assets in the business, to date. Events and conditions occurring after that date have not been considered.
Our designated team will see that the information that A-pharmaceutical representatives provide, is complete and accurate to the best of their knowledge.
Upon the acceptance of these terms, we will be ready to draft a formal purchase agreement and hand it over to you for your final review.
We look forward to your response.
XYZ Enterprises Limited