Procedure for buying a business
Your Broker needs to get to know you to insure the best use of time for all concerned. This process is
called qualification. To help you buy, your Broker must know your business and financial strengths and limits. This information may be shared to help inform brokers, sellers, landlords and lenders about your ability to do business.
Your Broker can help you create a customized search profile based on your resources, requirements, and resources. All decision makers must participate in this process in order to generate the criteria for your search.
Short List Development
Your investment criteria may be used to search databases of businesses available for sale. These "live" databases are constantly being updated by hundreds of Brokers and the Sellers they represent. The results of your initial search may then be further reduced to a short list of businesses you would like to learn more about.
Up to this point, the information you receive is generic. In order to provide additional detail, including the name and address of the business, you must agree to keep all details, including the fact that the business is for sale, confidential and to negotiate through your broker.
Confidential information is only available after you furnish a confidentiality agreement for each business which interests you. This agreement will be used to register you with business sellers and may be accessed via a link after you complete and submit our contact form. Each business profile includes a unique number which must be included on your confidentiality agreement.
This process gives you a chance to have any basic questions answered before we invest the time to meet with the Seller. If you plan to travel to Florida to buy a business, scheduling a few calls prior to your arrival will allow all parties make the best use of time.
Meet the Seller
Face-to-face interaction helps you determine your compatibility with the Seller. Additional detail is generally available at this time.
Offer and Acceptance
Your broker can help you determine the value of the business by providing information about comparable sales. Your written offer, accompanied by your good faith deposit, will document the price and terms at which you agree to purchase the business. Making your offer in writing assists the Seller in agreeing to your terms or negotiating changes that may lead to a contract.
Standard contract contingencies include a legal review of the contract, financial due diligence, an employment agreement, a non-compete agreement, equipment inspections and an assignment of any lease agreement. Other common contingencies include finance from third parties and franchisor approvals.
The closing is the meeting that results in the purchase and sale. This is when you pay for the business and receive ownership. Through cooperation with your other advisors and with our thorough understanding of this process, Collins & Collins Investments offers you an effective and efficient solution to the challenges associated with purchasing your business properly and for the right price.