#1.Complete Non-Disclosure Agreement

#1.Complete Non-Disclosure Agreement

You sign an NDA, thereby promising to maintain confidentiality for all of the information provided to you on the businesses we review, discuss, or present. The confidentiality agreement protects the seller and is required. Your information is kept confidential.

#2.Review Business Summary

#2.Review Business Summary

Financial statements are not always released until you have toured the business and the seller has approved of the release. Review the Business Summary containing: history, hours, licensing, product overview, sales process, marketing summary, customer concentration, staffing, competition, suppliers, location, lease, equipment, inventory, accounts receivable and payable, expansion potential, training, and non-compete.

 

#3.Request additional information or tour selected business and complete detailed Buyer Profile

#3.Request additional information or tour selected business and complete detailed Buyer Profile

Some sellers may require a Buyer Profile before releasing information. You are providing the seller with information about yourself, including a resume, financial statements, and available capital to investment. The more information we provide to the seller and your financing sources, the stronger your negotiating position. After approval, the seller may supply you with additional information, or you may set up a meeting with the seller.

#4.Additional information gathering and/or meetings

#4.Additional information gathering and/or meetings

If you wish to pursue the business further, you may request additional information from the seller, including additional face-to-face meetings.

 

#5.Make offer

#5.Make offer

If you are still interested in the business after receiving more detailed information and seeing the business, then it is appropriate to make an offer on the business. Your offer is contingent on a more in-depth review of the business (due diligence). Offers are normally accompanied by a 5% earnest money deposit.

Your offer is typically contingent on:

  • An in-depth review of financial statements and tax returns
  • An ample training period from seller
  • A covenant not to compete (CNC)
  • Obtaining an adequate lease or lease assignment
  • Approval of third-party financing
  • Third-party reviews, such as attorneys and accountants

#6.Due Diligence

#6.Due Diligence

Upon acceptance of your offer, you will begin the due diligence period. This period typically lasts 30 days and involves an in-depth review of financial statements, tax returns, lease, machinery and equipment, etc.

#7.Request to Open Escrow

#7.Request to Open Escrow

If your due diligence is satisfactory, an additional deposit is made to open escrow. Escrow prepares all closing documents and will conduct necessary legal searches. A deposit of 50% of the total cash down payment, less earnest money is normally made upon opening escrow. Closing costs are normally shared by buyer and seller equally.

#8.The Closing

#8.The Closing

Congratulations, you are now a business owner! You should now announce your new ownership to the employees and begin the transition period with the seller.

Schedule a Free Consultation or Call Back

We do not currently offer free consultations for those looking to buy a business. To learn more how we could assist you, please visit our Buy a Business page. You may also view our Businesses for Sale. If you prefer to contact us, please fill out the form and we'll reach out to you within 24-48 business hours. Thank you.