WANT TO BUY OR SELL A PROPERTY?
Buy a Business
Guide to Buying a Business
- Actual results rather than pro-forma.
- Immediate cash flow.
- Trained employees in place.
- Established suppliers and credit.
- Established customers and referral business.
- Existing licenses and permits.
- Training by the seller.
Process of Buying a Business with a Broker
List of Services
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Step 1List Item 1
Meet with us and execute the confidentiality agreement & financial statement.
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Step 2List Item 2
Review business profiles and select businesses that appear interesting to you and fit into your financial capabilities. View listings on our Listings page. Other listings can also be found on www.bizbuysell.com.
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Step 3List Item 3
If possible, “mystery shop” the business to get a feel for the location and business. Do not talk with the owner, clients or staff when mystery shopping as that is a breach of confidentiality. Very important.
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Step 4List Item 4
Request your broker to arrange a meeting with you and the seller to discuss operational questions, facilities, employees, clients etc. etc. Buyer/seller rapport is essential in successful sale.
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Step 5
Later, meet with your broker to determine if your meeting with seller has given you a positive feeling for the business and the “SELLER”!!
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Step 6
Make an offer under the assumption that all the information you have been provided is correct. Include contingencies that will allow you to confirm all information. We will show you how to write an offer to protect you as a buyer. Your offer will allow you to investigate all aspects of the business, while at the same time be in a position to “walk away from the transaction” at any time!!! The due diligence includes detailed financials (sometimes a call/meeting with the seller’s CPA or CFO), review of client lists, vendor relationships, lease agreements/negotiations, product detail, registrations, licenses, facility inspections, update on employee relations, etc.
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Step 7
Submit a Good Faith Escrow Deposit check, as requested, by Broker. This is a refundable deposit should you withdraw from the deal anytime prior to the engagement of the closing attorney (after all due diligence has been complete and all contingencies checked off). This deposit “holds your place” as the Buyer. The Broker will not bring any new Buyers to the Seller during the agreed upon due diligence period.
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Step 8
Once price and terms have been agreed upon, make a closer inspection of the business, confirming to your satisfaction all aspects of the operation. This is called Due Diligence and is where you consult with your banker, accountant and attorney, as needed.
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Step 9
Approve authorization to prepare closing documents. You and the seller will share the cost of the closing attorney. This lawyer will not argue the position for either party but draft all necessary documents to comply with the agreement a buyer and seller have reached. Your own independent attorney will review the documents, as needed.
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Step 10
Close the purchase and begin your first day as the owner of your own business.