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Who Buys a Business?
The vast majority of all business buyers are first time buyers. Anyone
thinking of going into business for themselves whether considering starting a
business, buying a new franchise, or expanding an existing business, should seriously
consider buying an existing business.
*** Most start-ups fail, including franchises. Purchased businesses have a
measured level of existing success and the added potential is all gravy ***
BASIC STEPS IN PURCHASING A
BUSINESS
Initial Meeting - Establishing your Needs and
Objectives:
Call or contact us (below) and we will start with a phone introduction. This initial meeting is where we focus on your strengths, needs,
objectives, and financial resources to build a buyer profile from which we will begin a detailed
search of targeted businesses for your review.
Review Acquisition Alternatives:
You will be presented with targeted companies including their comparative
financial and operational information. Company profiles and comparable
business values will be reviewed to determine the right fit.
Due Diligence Stage begins:
Once a business is identified, a "Confidentiality/Non Disclosure" form is signed
and company details are disclosed for your review.
On-Site Visit:
Arrangements will be made for a non-disruptive and confidential visit with the
owner for an introduction, initial look and to ask detailed questions.
Purchase and Sale
Agreement:
A standard Purchase and Sale Agreement covering the necessary elements of a
business sale is prepared which includes contingencies to protect both Buyer and
Seller. Such contingencies include reviews of: books and records, leases,
equipment and fixtures, inventory, training and counsel.
Structuring the Sale:
Deal structuring is the most difficult aspect of successfully consummating a business sale
and purchase. The options are limitless from simple stock or asset sales, to
partnerships, joint ventures, etc., and favorable structures to both parties
will be discussed.
Preparation of Closing
Documents:
Clear, concise documents to protect both parties are prepared for you to consult with accountants
and attorneys and to provide an agreement of sale based on practical application of
legal and tax issues.
Final Closing and
Follow-Up:
Following execution of the Purchase and Sale Agreement, an escrow officer or closing agent will be
arranged for to oversee the closing preparations and follow-up on post-closing
procedures. All closing documents are provided to Buyer and Seller prior to
closing with adequate time for review by their prospective attorneys. Business
Sale closing costs are quite reasonable and usually split between Buyer and
Seller, and the seller is responsible for the Brokers Fee.
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