Buying a Business

The process of locating a business to purchase can be both rewarding and taxing.

The role of the business broker on the buying side of a transaction is very similar to the role of the business broker on the selling side in every respect except that as a buyer you must either prove you have the funds for a cash deal or you must become prequalified for a commercial loan.

When purchasing a business we as business brokers will act as your agent, searching the area of your choice and locating businesses that meet or exceed your criteria. We will then present these opportunities to you and you will choose which ones you'd like to pursue. We will then go back to the businesses you've chosen letting them know we have a potential buyer and that we would like to see the tax records for the past few years to gauge how well or how poorly the business is performing.

The business owner or their representative will then ask you as the potential buyer to sign a Non Disclosure Agreement. Once you've signed this agreement stating that any and all information gleaned from this process will remain confidential for a period of years, usually 3 - 5, they will then release the tax records, profit and loss statements, pro formas and other relevant financial information for us to review.

Upon review the financial records you will usually be able to determine in a short period of time if this business is worth looking into further. If you determine that this business is not what you seek, the deal is over and we move on. However, If you determine that the numbers look good and you want to dig a bit deeper, we will then set up a visit to the business and enlist the services of a CPA, an attorney and/or other professionals relevant to the particular business or industry.

If you remain satisfied with this business we will then discuss the terms of a purchase offer. Once the terms have been determined and the funds have been arranged we will present the offer to the seller. If the offer is accepted with no change in terms we will then proceed to closing. If the offer is not accepted, or it is countered, we will then negotiate with the seller on your behalf for terms which are acceptable to you. When a deal is reached we will then proceed to closing.