Buying a Business

Buying a suitable business is a significant and life changing decision and in today’s vast open market buying has become increasingly difficult and challenging not due to the lack of choices but to pick the right choice suitable for the buyer. There are many factors one must look into before choosing the right business, Our Methodical approach to gather all the necessary information, analyze, research, strategies and structure the deal in a way which helps the buyer to easily review the information and to pick the most suitable business. We also assist in valuations, negations and finding the right lending partner if required.

Here are the basic steps to buying a business

Self-Assessment & Evaluation

You have made the decision to purchase a business. Owning a business is different for every buyer some are looking to be self-employed, independent, lifestyle change, flexibility ,pride others have a natural talent for the field and want to capitalize on it and whatever the reason might be ,The end goal is profitability which is the key for long term success, building wealth and taking charge of your own destiny so self-assessment and confidence that you can be a diligent business owner is the first step . We being our process with evaluation- Gathering detail information of your skills, experiences, personal life goals, financial capabilities, preferred industry, revenue size, location finally long term goals. This evaluation information helps us gain the knowledge for finding the best type of business to present and pursue ultimately gaining your commitment.

step 1

Self-Assessment & Evaluation

Education

It is very important to understand various data available for the business on sale and also the buying process itself .Data helps in assessing and evaluating a business which is a very critical factor in choosing the right business and if the business is right for you the buying process then becomes a very crucial factor because having the knowledge of the process will keep you a step ahead of what is coming and be better prepared for it and the best example is lack of capital or lack of knowledge to acquire funding .We educate, assist and prepare you before diving into the marketplace to find the right business.

step 2

Education

Finding & Reviewing

step 3

Finding & Reviewing

Now the search begins to find the desired business which meet the investment and geographical criteria. We will find you various business including many that you would not be able to find on your own. Large percentage of buyers end up buying businesses something completely different from the business that they first inquired about or a business in a particular industry which have your mind set on and present it to you .once you are interested in a business and want take it to the next step most business require you to sign a non-disclosure agreement(NDA) which protects/prevents the buyer from disclosing the business details to other non-interested parties. Once signed detailed information can be requested and analyzed to make decision about buying .To mention a few steps we help in other than the once mentioned above are : understanding NDA, analyzing historical performance /management/staff/operations/support and finally potential growth ,Setting up showings with seller, What items/business reports should you request to better evaluate the opportunity, Assess Financials/cashflow , Assist Due Diligence Planning, , determine the difficulties transition and transferability ,assist in preparing purchase agreement

Why this review is very crucial : Buying an existing business with good cash flow and profits along with trained employees ,good customer base, process in place is a big advantage as lot of the setup and hard work of starting a new business is completed and it is less risky than starting a new business.

Offer

This is a step where all the financial, operational information is reviewed and meets the buyer criteria and ready to make an offer or provide a letter of intent .We assist in deal structure and negotiations and help you in drafting a contingent offer. A purchase agreement will be presented to the seller and some times a deposit for good faith will be required and be held in escrow .Attorneys are usually involved in this process and will carry forward till the closing as lot of legal agreements and documents must be reviewed by them.

step 4

Offer

The Due Diligence Process

This step is often time consuming for either parties and costs may be incurred for items such as lien searches ect…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 conformation of the of the initial business information provided by the buyer .For large business sales additional professionals help will be required for accounting and legal due diligence .Some business might also require additional help depending on the type of the business like inspections ect..One of the key aspects of this step is securing finance for the closing process .We can usually help in recommending various financial intuitions if you are qualified for repayment of the loan and work with them in providing the necessary documentations.

step 5

The Due Diligence Process

Closing Process & Closing

After a satisfactory due diligence and finances are secured to close many other agreements -to name a few :leases ,inventory counts ,utility transfers, merchant services agreements are in place. The attorney usually prepares a bunch of closing documents 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 a very crucial step for the new business owner as the training and transition starts for the agreed period by both parties and the agreement period varies from business to business and sometimes can be a long process. 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 you can have a seamless and successful experience in purchasing an owing a business.

The bottom line

Being in business for yourself can be a daunting prospect. There are no guarantees. At some point, after all of 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 taking this leap of faith, almost all business owners will tell you that they would never go back to being an employee.

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