Where it all begins
It’s very important for you to consult with an expert
Many times a Buyer’s first question is,
“What kinds of businesses do you have?”
Well, we have lots of businesses, so that’s a tough question to answer without some idea of the Buyer’s resources, skills and needs. There’s a match made in heaven, but it’s a match we can’t uncover without questioning you and learning more about you.
Unless you’ve bought or sold a business in the past, you’ll find that buying a business can be a confusing and even tiring experience for the unprepared.
Even if you’re a veteran in business transfers, and you’ve bought and sold many small businesses, you’ll need an expert to bounce ideas against.
The search for business opportunities almost always starts with a telephone call or a visit to a web site. Sometimes the prospective Buyer is a Corporation, Private Equity Group or a Private Investor who has a very definite idea of the type of business wanted.
We’re not just being nosy, we’re narrowing your search and saving you time and aggravation.
Our web site Buyer registration offers a message block that is a great way to narrow your search and help us help you find the business of your dreams.
At this point in your search, you’ll find yourself holding one or more non-confidential summary sheets for businesses you want to know more about. This “digging deeper” step takes your business opportunity search to a new level.
This new level is one of mutual trust and obligation between you, us as your agent and the Seller(s) of the business(es) you’re interested in. Now you’re being exposed to the specifics about the businesses you’ve been considering and your agreement to keep this information confidential is required. Before we send you confidential information, we require you to send us your Buyer Profile and we require you to sign a Non-Disclosure and Confidentiality Agreement. When you return these documents to us, we’ll divulge to you the name and address of the business you’re interested in. Please note that when you sign the Non-Disclosure Agreement you are agreeing to keep all of the information that you receive from us strictly confidential. And, you are agreeing not to contact the owner of the business except through us and with our permission. We take any violation of this bond of trust between you and us very seriously, and we will not tolerate any breeches of this trust.
The most important element in this process is the report on the business you’re interested in is written to give you the information you need to decide whether or not the business is right for you.
A typical Business Profile contains a detailed description of the business, summary financial data, additional business facts like lease information, number of employees and much more.
Face to Face
After reading the Business Profile, reviewing financial data on the business you’re interested in, we can either make an offer or set up a meeting with the business owner prior to your making an offer. you should be prepared to make an offer for the business.
Making An Offer
After meeting the business owner and touring the business, the next step is making an offer for the business. Making an offer is not a final step. In fact, it should be viewed as the first of several steps, each of which bring the Buyer and Seller closer to completing the transaction.
Since this is a privately held business, the Buyer is obligated to make an offer before seeing the business’ detailed internal financial records. The Buyer must understand that their offer is always contingent upon the Seller proving his or her representations. Due diligence – a specified period of time during which the Buyer investigates the business fully — is costly and time-consuming, and it must be done only after an agreement on price and terms is reached.
It’s the Seller’s responsibility to prove everything to the Buyer. Put another way, your agreement on price and terms will be “non-binding” until you’ve had the opportunity to see all financial records and we have removed all contingencies.
Your Offer To Purchase will consist of the following:
Terms. Price, down payment and agreed-to financing (interest rate, period, etc.).
Contingencies. Approval of
books and records, equipment, inventory, assignment of leases or loans and any
other items that the Buyer requests to be incorporated into the structure of
Conditions. Non-compete clauses, consulting agreements, training agreements and other relevant parts of the structure of the agreement.
Your resume of business background and experience.
Your financial statement.
Your credit report (paid for by you).
And your “Earnest Money” deposit check in the amount of 10% of the offered price. This check is not deposited until the close of the due diligence period and you are comfortable moving forward with your purchase. Typically, your check is cashed upon the opening of escrow.
Due Diligence: Clearing The Way.
You and your advisors – attorney, accountant and others – will have a specified period of time to complete your due diligence and remove the contingencies (typically 10 days). When due diligence is complete and the contingencies are removed, the contract is binding. Should the business fail to pass due diligence, you are free to rescind or amend your Offer To Purchase.
Working with Sellers and the SBA. Almost every deal requires some form of financing. We work with Buyers to help obtain the appropriate financing for the business being purchased. Often, this means a Seller’s Note and it also often means a bank loan guaranteed by the Small Business Administration. But whatever the financing requirements, Buyers can expect guidance and assistance in this important area.
Escrow & Closing
Escrow typically takes about 3-4 weeks. After escrow receives signed instructions, the escrow officer will contact government tax agencies for clearance and publish your business name filing, enabling you to open business and banking accounts. Also during this time a Notice To Creditors will be published allowing anyone with a claim against the business to step forward.
You’re In Business:
Congratulations! Finally, the big day arrives and you open the doors of YOUR business for the first time. There is no bigger thrill, no better feeling than knowing that you are in control of your destiny.
We guide you along the way and help make your transition to business owner stress free and simple. So, now is the time to go back to our “Businesses For Sale” section and get started on your search for your part of the American dream.