Buying a Business

Buying a business is a significant life-changing decision. In today’s vast open market, a business that is suitable to your needs has become increasingly difficult to find. There are many factors one must consider before purchasing a business. A qualified business broker is key in buying a suitable business as our methodical approach to gather, analyze, and research, aids in strategizing and structuring the deal. Buying a business also requires valuations, negotiations and finding the right lending partner which is our area of expertise.

HERE ARE THE BASIC STEPS TO BUYING A BUSINESS

Self-Assessment & Evaluation

Buying a business is a different experience for every buyer – one may be looking to be self-employed, independent, while others may be making major lifestyle changes, flexibility. Some may have a natural talent for the field and want to capitalize the idea.

The end goal for any business buyer is PROFITABILITY!

Identifying a business that is sustainable and profitable is key to long term success, building wealth and taking charge of your own destiny.

Self-assessment, self- confidence and being a diligent business owner are therefore most important while buying a business.

Our process begins with evaluation, gathering details of your skills, experiences, personal life goals, financial capabilities, preferred industry, revenue size, location, and finally long-term goals. Buying a business requires these critical evaluations by us and ultimately resulting in finding a suitable business for you to buy and in gaining your commitment.

step 1

Self-Assessment & Evaluation

Education

Finding and purchasing a business requires extensive knowledge and education in the marketplace.

It is very important to understand the business buying process and to interpret the data points available for buying a business on sale.

Understanding the business buying process will keep you a step ahead on potential opportunities. Many business deals are not successful due to a knowledge gap in acquiring funding.

Data is a critical factor in assessing and evaluating in buying a business for sale. Lack of knowledge in data analysis will result in choosing an unsuitable business.

Working with a business broker likes us- we educate, assist, and prepare you to find the right business in the marketplace.

step 2

Education

Finding & Reviewing

step 3

Finding & Reviewing

Now the search begins for buying a business which primarily meets the investment and geographical criteria.

We present various business buying options that you may not be able to find on your own. It is not uncommon for a large percentage of buyers to buy a business something completely different from the original business interest. Upon identification of the desired business to buy, a non-disclosure agreement (NDA) will be required to be signed. NDA protects/prevents the buyer from disclosing the business details to other non-interested parties. Once signed, the information about the business can be requested and analyzed to decide about buying.

We help in understanding NDA and provide you all the basic information you require from the seller leading you to make an offer and to eventually buying a business.

Examples of some of the information you may require, and request are historical and current performance of the business, management/staff/operations/support, and potential growth potential, setting up showings with seller, business reports to evaluate the business, assets, financials/cashflow, determine the difficulties transition and transferability, preparing purchase agreement to buy a business. Buying a business with good cash flow and profits along with trained employees, good customer base is a big advantage as it does not include the setup and hard work of starting a new business.

Offer

This step in buying a business is where all the financial, operational information is reviewed and meets the buyer criteria and is ready to make an offer or provide a letter of intent (LOI). We assist in deal structuring and negotiations and help you in drafting a contingent offer. A purchase agreement will be presented to the seller and sometimes a deposit for good faith will be required and be held in escrow. Buying a business requires specialized closing attorneys, who are usually present in this process till the closing as several legal agreements and documents must be reviewed by them.

step 4

Offer

The Due Diligence Process

In buying a business, this step is often time consuming for both parties and costs may be incurred for items such as lien searches etc.…In this step the buyer has a full access to seller’s business financial documents, agreements, leases, business reports and tax returns. This is basically a confirmation of the of the initial business information provided by the buyer. For large business sales, additional professional help may be required for accounting and legal due diligence. Some business might also require additional help depending on the type of the business-like inspections etc. Simultaneously, one of the key aspects in this step is securing finance for the closing process. We can help in recommending various financial institutions if you are qualified for repayment of the loan and can work with them in providing the necessary documents.

step 5

The Due Diligence Process

Closing Process & Closing

After a satisfactory due diligence and securing finances to buying a business, many other agreements such as: leases, inventory counts, utility transfers, merchant services agreements are required to be prepared for the closing process. The attorney usually prepares closing documents for buying a business such as bill of sale, noncompete agreements, lease agreements, closing statements and all the necessary to make the sure the closing process is seamless on the agreed day of closing. The acquisition is completed by signing several documents by buyer and seller and the purchase price amount is transferred to the seller which is essentially called closing.

step 6

Closing Process & Closing

Post Closing

step 7

Post Closing

This is also a very important step for the new business owner after buying a business as the training and transition starts for the agreed period by both parties prior to closing and the agreement period varies from business to business and sometimes can be a long transition period.

This period also includes meeting with employees, customers, vendors and basically transfer of any essential knowledge which is required by the new owner to run the business smoothly going forward.

These are the basic steps involved in buying a business, we will be there to assist in every step of the way answering additional questions which may arise during the buying process hence a business broker like us can be helpful in many ways and are a trusted source of information about the buying process handling all the details of the business sale to guide you in the right direction with the consultation of other professions as discussed above .You will discover that with our assistance in buying a business for sale you can have a seamless and successful experience in purchasing an owing a business.

The bottom line

Buying a business for yourself can be a daunting prospect. There are no guarantees. At some point, after all your investigation is completed, you will still have to make that “leap of faith” that is necessary to proceed with the purchase of the business. You will have to work hard, perhaps even “tighten your belt” a little, and perform many different jobs to be successful in your own business. But, if running your own show, making your own decisions, not having to worry about job security (remember, no one can fire you from your own business), and just being on your own are important – then owning a business is for you. After buying a business and taking this leap of faith, almost all business owners will tell you that they would never go back to being an employee.

OUR PHILOSOPHY

Competence and systemization is how we differentiate and deliver

  • LATEST
    TECHNOLOGY

    At Urban Business Brokers, we Invest in the latest tools and technologies to ensure comprehensive and accurate data capture.

    Our process and technologies ensure 90% of potential opportunities in a targeted market are identified.

  • IN-HOUSE
    DELIVERY

    No part of our campaigns are outsourced, and none of our data is purchased from a third party.

    Controlling every part of the process ensures each team member involved cares about our client’s success.

  • HUMAN
    CONNECTION

    Business owners are quick to identify inauthentic outreach.

    Having owned and acquired companies ourselves, our outreach is designed to create real human connection at each step of the process.

  • RESULTS

    Our goal to introduce you to 3 - 5 owners who are interested in selling.

    ** We have run campaigns where buyers are introduced to over 12 owner’s matching their criteria and looking to sell.

Our Proven Process

Discover the team and tools behind our proven deal origination process.

  • Stage 1

    DEFINE YOUR TARGET

    • Our process starts with an online intake form to capture your search criteria (5 minutes).
    • Your unique search parameters are entered into your database and direct our team’s search.
  • Stage 2

    DATA COLLECTION

    • Our data analysts use our software tools to identify the companies fitting your search criteria (up to 1,500).
    • Once the search is complete, he spends 3-5 days visiting each business’s website to eliminate companies that are too small or not a strategic fit.
    • At the same time fill in missing data - owner’s phone number, emails, employee headcount, etc.
    • The data is then passed to the Deal Origination team to run quality control and build the final outreach list.
  • Stage 3

    OUTREACH

    • During the outreach stage, we send a short, relevant, and courteous email to your 300 - 1,500 prospects.
    • Emails are sent from Raavi's email address, so prospects can easily confirm legitimacy with LinkedIn, our website, or on a phone call.
    • Bounced emails, or emails that go unanswered are passed to the deal origination team to connect with the prospect via phone.
  • Stage 4

    PERSONAL CONNECTION

    • Owner’s who express interest in having a conversation are booked into Raavi’s calendar. Raavi holds Zoom or Phone calls with each business owner interested in selling to determine:
      • Exit timeline
      • Primary motivations and goals around selling
      • Revenue, EBITDA, # of staff, management details, and other criteria identified as important to you
    • Prospects are further refined into three categories - Selling Now, Selling in 2-5 Years, Potential Partnership Opportunities.
  • Stage 5

    INTRODUCTION & RESULTS

    • The final step is introducing you via email to the owners who are a strategic fit.
    • Additionally, the complete database of all prospects, exit timelines, and business information are emailed to you for future use.
    • Our goal to introduce you to 3 - 5 owners who are interested in selling.( ** We have run campaigns where buyers are introduced to over 12 owners matching their criteria and looking to sell.)

Buy-Side Services Overview

Memberships & Certifications

Subscribe to receive new listings

@2021 Urban. All Rights Reserved