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.
Your commitment to purchase a business at price and terms consistent with the marketplace that is consistent with your needs and abilities.
You sign an agreement promising to maintain confidentiality for all the information provided to you on the businesses we discuss.
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.
Together we discuss and review various types of businesses and select some that appeal to you.
We introduce you to the businesses you are interested in and discuss the important factors of each.
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
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.
We carefully explain the terms and conditions of the offer to the seller and decision makers.
The seller accepts the offer to purchase as presented or counter offers.
When buyer and seller agree to all terms and conditions of the sale, the offer becomes a Purchase and Sale Agreement.
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.
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.