What It Takes To Buy A Business - “The 20 Step Buying Process”

What It Takes To Buy A Business 

“The 20 Step Buying Process” 

1.      Commitment:  Your commitment to purchase a business at price and terms consistent with the marketplace.  You’ve thought through your business objectives and are prepared too move swiftly, if and when the right business is presented to you.

2.      Disclosure:  You sign an agreement promising to maintain confidentiality for all the information provided to you on the business we discuss.

3.      Background Information:  You provide us with information about yourself. The more we know about you, the more we can find a business you will like.

4.      Review:  You and your Vested Business Broker will discuss and review various types of businesses that interest you plus, the financial parameters associated with your search.

5.      Showing:  Your Vested Business Broker sets-up an appointment to show you the business you have shown interest in and provides important information regarding the opportunity.

6.      Meeting:  In most instances, after you have accompanied the Broker to the business location, you will have a meeting with the seller and the Vested Business Broker. This gives you a chance to ask more detailed questions and establish a relationship with the Seller.

7.      Offer to Purchase: You prepare, with our assistance, an offer sheet for the business you’ve chosen to purchase. This offer will be a “contingent offer” meaning it’s non-binding until the conditions of the Seller have been met.  Typically, you would deposit earnest money at this time demonstrating your seriousness to the Seller.

8.      Present Offer: We then present your offer to the Seller.

9.      Explanation:  We carefully explain the terms and conditions of your offer to the Seller.

10.  Acceptance:  The Seller accepts the offer, as written, or makes a counter proposal.

11.  Mutual Acceptance: When both Buyer and Seller agree to all terms and conditions of the sale, that offer becomes the basis for a Purchase and Sale Agreement.

12.  Inspection and Due Diligence:  Buyer meets with Seller to examine the financial records of the business and resolves outstanding issues or questions regarding the operations and financial aspects of the business.

13.  Contingency Removal:  Buyer and Seller remove all contingencies of the agreement.

14.  Contract Preparation:  During or shortly after the due diligence period, the Seller’s attorney normally prepares and submits to the Buyer’s attorney the Purchase and Sale Agreement for review.

15.  Property or Lease Assignment:  All parties will work with the property owner or landlord to get an assignment of the current lease, or negotiate a new lease for the Buyer.

16.  Lien Search:  In most states, the escrow attorney performs a lien search on the business to identify any secured creditors.

17.  Inventory:  Arrangements are made for the Buyer and Seller to count and price inventory, if required.

18.  Closing:  All parties meet, at a designated location, to sign documents.

19.  Business Transition:  In order to insure a smooth and successful transition of ownership, it is customary that the Seller continues to work with the new Owner for a period of time following the closing date. This period varies depending upon the size and complexity of the business purchased.

20.  Congratulations on Your New Business:  Your dream has now come true. You are the proud Owner of a new business.  We wish you success!