Buying a Business
No two businesses are the same nor are any two acquisitions the same, making each transaction unique and challenging. Even if you have bought a business before, the next experience is going to be different.
Complicated as it may seem, the Buying Process does, however, have a general order that has proven over the years to work best.
- Explore the advantages of owning a business and decide whether business ownership is for you.
- Find a business that not only interests you but that you can see yourself enjoying. Consider contacting a broker to help you find the right business.
- Sign a Confidentiality Agreement and provide the broker with your background and financial information.
- Review the business to see if it meets your needs and financial capacity.
- Arrange with the broker to meet the seller and visit the business, usually outside business hours.
- Prepare an Offer or Letter of Intent (LOI) which is presented to the seller through the seller’s broker. The offer will be accepted, rejected or a counter offer proposed. Expect at least some level of negotiations before arriving at a mutual acceptance of the final offer.
- Perform financial and operational due diligence while at the same time arranging for financing, if needed.
- Closing documents are prepared by the buyer’s and seller’s attorneys, or a neutral professional closing attorney.
- An inventory is taken as close to closing as possible.
- A closing takes place followed by seller training the buyer and assisting in the transition for an agreed period of time.
Having assisted buyers through literally hundreds of successful transactions, we are available to assist at every step along the way.