The Business Buying Process
The business buying process should be entered into with caution - and knowledge, of things like mutual acceptance, due dilligence and the open escrow/closing attorney.
COMMITMENT
Your commitment to purchase a business at price and terms consistent with
the marketplace that is consistent with your needs and abilities.
DISCLOSURE
You sign an agreement promising to maintain confidentiality for all the information
provided to you on the businesses we discuss.
BACKGROUND INFORMATION
You provide us with information about yourself, such as a resume and financial
statement. The more we know about you, the more likely we can find a business
you will like. The more information we provide the seller, the better the
terms he will consider.
REVIEW
Together we discuss and review various types of businesses and select some
that appeal to you.
INTRODUCTION
We introduce you to the businesses you are interested in and discuss the
important factors of each.
MEETING
A meeting between you, the seller and us may take place. This gives you the
chance to ask questions you may have about how the business operates and
to describe your qualifications to the seller.
OFFER TO PURCHASE
You write, with our assistance, an offer or letter of intent for the business
you like.
- Earnest money may be required to demonstrate the seriousness to the seller.
- Most offers are contingent upon your inspection of the books and records of the business.
— The offer is not binding until you remove ail contingencies —
PRESENT OFFER - We present your offer to the seller
BACKGROUND
We give to the seller your background, financial information, experience
and point of view in arriving at the offering price, terms and conditions.
Favorable background information about you will result in favorable consideration
of your offer.
EXPLANATION
We carefully explain the terms and conditions of the offer to the seller
and decision makers.
ACCEPTANCE
The seller accepts the offer to purchase as presented or counter offers.
MUTUAL ACCEPTANCE
When buyer and seller agree to all terms and conditions of the sale, the
offer becomes a Purchase and Sale Agreement.
DUE DILIGENCE
You meet with the seller to examine the financial records. Any questions
you have are resolved at this time. We work with the landlord to get an assignment
of the current lease or new lease for you.
OPEN ESCROW/CLOSING ATTORNEY
We provide all documents to the transferring agent or attorneys so they can
prepare the closing documents. They make arrangements to assign any notes
or equipment leases.
INVENTORY
Arrangements are made for you and the seller to count and price the inventory
(if required).
TRANSFER OF OWNERSHIP
All parties meet to sign documents.