Let's make your dreams of business ownership a reality!
Whether you are just starting out or looking to expand, let us help you find exactly what you need to grow your business!
We will work diligently to ensure the space captures everything on your "wish list" and is aligned with your current property value from your market analysis!
NEXT STEPS TO BUYING YOUR BUSINESS
FIND A BUSINESS
Once you have decided that you want to become a business owner, you need to find a business that will work for you. Working with a business broker can help you find a business that suits your financial budget and business dreams.
Did you know? 90% of people are looking to purchase a business outside of the industry they originally wanted?! That is thanks to the dedicated and diligent business brokers who connect buyers with the right business!
EVALUATION AND RESEARCH
Now that you have a business in mind, your next step is to research everything you can about them. You will want to do a business valuation to ensure that you aren't being "over sold." We will perform a market analysis to compare the price to similar businesses.
MAKE AN OFFER
After you've drafted a reasonable offer with your business broker, you will submit that offer to the seller. There may be some negotiation in terms of pricing and other logistics, but if you can agree to an offer and sign a Letter of Intent (LOI)!
If you cannot agree on an offer, it might be in your best interest to move onto another prospective business. You don't want to stray far from your original offer and terms.
DUE DILIGENCE
Now that your LOI is signed you will start the due diligence process. During your initial research you got a basic overview of the business, but now you will dig deeper and get information not available until after an LOI has been approved. We suggest you look for the following during the due diligence process:
- Organizational documents for the business (e.g. incorporation docs, certificates of good standing, business licenses, etc.)
- Previous 3 years of business tax returns
- Current and previous year income statements, balance sheets, and cash flow statements
- Revenue broken out by customer for the last 3 years
- Information on existing business debt
- Customer lists with proprietary information blocked out as necessary
- Existing contracts—can these be assigned to the new owner?
- Commercial lease or other property documents
- Uniform franchise disclosure document (if the business is a franchise)
- Employee and manager information
- Marketing and advertising materials
- Legal records for pending litigation, if any
It is important to note, if the business is hesitant to relinquish any of this information, you should consult with your broker and consider moving to another option.
SECURE FINANCING AND CLOSE THE DEAL
It's now time to secure your financing! This is normally completed with a combination of loans and equity. You'll want to start this process when you figure out your budget and work through the agreement with the seller. This step just secures the financing and allows you to close the transaction.
Now that all your "ducks are in a row" you can move on to the closing phase and get the keys to your business! As long as everything checks out with your initial due diligence and financing you can draft a purchase agreement and finalize the closure!
You'll then need to get insurances, licenses and certifications in your name to continue running the business. Your business broker can help you to ensure a smooth transition!
Find A Home For Your Business!
If you're ready to take the next step to grow and expand your business, click the button below to get started!
Our dedicated team is ready to help you turn your dreams into reality!