How to Buy a Business

If you are motivated by personal accomplishment, stimulated by challenge, and want to be your own boss, then business ownership is for you. However, let someone else take the risk and high cost of starting from scratch. Buying an established business provides you with two of the three necessary components of success - a proven location (or customer base) and the right product. You provide the third ingredient - management.

Buying a business has process and is made up of several step your are required to follow.

1. COMMITMENT
   The 1^st is your commitment that your goal is purchase a business at a price and terms consistent with the marketplace that is consistent with your needs and abilities.

2. DISCLOSURE
   You must sign an agreement promising to maintain confidentiality for all the information provided to you on the businesses we discuss.

3. BACKGROUND INFORMATION
   You must 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 or she will consider.

4. REVIEW OF BUSINESSES
   Together we discuss and review various types of businesses and select some that appeal to you.

5. INTRODUCTION TO BUSINESSES
   We introduce you to the businesses you are interested in and discuss the important factors of each.

6. MEETING THE OWNERS
   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.

7. OFFER TO PURCHASE
   You write, with our assistance, an offer or letter of intent or offer to  purchase 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 all contingencies.

8. PRESENT OFFER
   We present your offer to the seller.

9. 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.

10. EXPLANATION
    We carefully explain the terms and conditions of the offer to the seller and decision makers.

11. ACCEPTANCE
    The seller accepts the offer to purchase as presented or submits a counteroffer.

12. MUTUAL ACCEPTANCE
    When buyer and seller agree to all terms and conditions of the sale, the offer becomes a Purchase and Sale Agreement.

13. INSPECTION
    You meet with the seller to examine the financial records. Any questions you have are resolved at this time.

14. CONTINGENCY REMOVAL
    You remove all contingencies in the Agreement. It is now a binding agreement.

15. LEASE ASSIGNMENT (If not Purchasing the Property and Building)
    We work with the landlord to get an assignment of the current lease or new lease for you.

16. ESCROW/CLOSING ATTORNEY
    We provide all documents to the transferring agent or attorneys so they can prepare the closing documents. They conduct lien searches and also make arrangements to assign any notes or equipment leases.

17.  INVENTORY
    Arrangements are made for you and the seller to count and price the inventory (if required).

18. TRANSFER OF OWNERSHIP/CLOSING
    All parties meet to sign documents.