Memorandum of sale
Published by:
Netherlands Chamber of Commerce, KVK
< 1 min read
A memorandum of sale is a document with information about your business for potential buyers. It gives a clear description of your business and its worth. Find out what you need to keep in mind when you draw up a memorandum of sale.
Purpose of a memorandum of sale
A memorandum of sale gives potential buyers more insight into your business. This helps them determine if the business will suit them. In the memorandum of sale you list, among other things, the history of the business, its financial situation, and the reason you are selling.
What is in a memorandum of sale?
- a summary of your business and its key features
- the history and background of your business
- your products and services; information about your market and competitors
- your customers and current contracts
- information about your staff and organisation
- your assets and financial liabilities
- your company’s financial figures for recent years
Make sure you have a non-disclosure agreement ready
Show the memorandum of sale only to seriously interested potential buyers. Make sure you have them sign a non-disclosure agreement. This is because the memorandum of sale contains a lot of confidential information about your company.