Page 12 - Sales Proposal - Craft Wicker and Things Limited

Risk to Buyers
The possible risks to the buyer include:
Customers and suppliers not having confidence in new management
Not having the expertise to run the business could be a challenge as no staff will be facilitated in the Sale Agreement
Purchaser may need to honour or renegotiate outstanding contracts
Purchaser will need to invest additional money to modernize the business especially in the area of technology and digital marketing.
Mitigants to Risks
Craft Wicker's management team is intending to work alongside the new owners for at least three months. During this time, the duo will be willing to effect the following:
Facilitate warm transfers with suppliers and customers
Facilitate training of the requisite personnel with the use of machinery, equipment and systems currently being used in the business.
Introduce the new owners to the current state of play as it relates to operations
Facilitate a payment option with at least 80% being paid upfront and the balance being paid over a period of time to be negotiated by both parties.
The intended Purchaser will have access to the following documents: Certified financial statements for the previous three years
A list of the plant, equipment, fixtures and fittings the vendor intends to sell, along with current valuation and confirmation of ownership.
Aged Receivables
List of Payables
List of Inventory Items