Whether you are a seasoned business professional or you’ve never purchased a business before VR in Bentonville has the staff and experience to assist you in making your next, or even first, business investment. The process can be long and complicated but we strive to make it as seamless and enjoyable as possible. Education is key to understanding and completing your business purchase and we will be there to answer your questions every step along the way.
It is important to remember when buying a business that our questions aren’t meant to be invasive, but rather a tool to help us help you narrow down your search. The investigation process begins with some Q&A then moves on to generic business descriptions where you may have an interest. Once you’ve narrowed your search down to 1 to 3 prospects… it’s time to dig a little deeper. We will require a buyer profile from you and a non-disclosure agreement prior to divulging more detailed and confidential information about your potential acquisition candidates. Once we receive that information we can supply you with the name and location of your potential business along with summary financials.
At this point we have entered into a trust relationship that requires you and us to abide by a certain set of ground rules. The first and foremost is the rule of discretion. For many reasons confidentiality is paramount to a successful business transaction. We expect and demand that you will not contact the business owner directly except through us and with our permission we take, very seriously, any violation of this bond of trust.
One of our duties to the seller is that we manage the selling process leaving them available to run their business. A primary way of accomplishing this is to answer as many of your questions as possible without interrupting the sellers day to day operations. A representative will work with you to answer your questions thoroughly prior to scheduling a face-to-face meeting with the seller.
A face-to-face meeting is important however, for you to learn as much as possible from the person who knows the business best. Additionally, the meeting carries another important element, since you may be seeking installment terms from the seller this is an opportunity to tell the owner as much about yourself as possible. Often, buyer credentials may be presented at this meeting.
Probably the most curious part of the acquisition process is the offer stage. At this point you have reviewed some cursory financial information, received answers to some of your more obvious questions, gotten to meet the owner(s) and review the facility. Since this is a privately held business the buyer is obligated to make his/her offer prior to seeing detailed financial records. Not to worry though. The offer shouldn’t be considered the end of the process but rather the first step in a series that bring the buyer and seller closer to a successful transaction. The buyer must understand that their offer is contingent upon the seller proving their representations about the business. In other words… your offer is “non-binding” if the seller cannot prove their representations to your satisfaction. There will be a predetermined time for this process called due diligence.
Due diligence is time consuming for both parties and in many cases may have some significant associated expenses. Therefore it is imperative that the buyer and seller have agreed upon a price and terms prior to engaging in due diligence. During the due diligence period you will have opportunity to fully investigate the company to your satisfaction.
Once the business passes your final inspection, the documents satisfying the remaining terms of the offer are prepared for closing. Almost every business transaction requires some institutional financing. We will be happy to assist you with document preparation for the lending institution or help guide you through the SBA lending process.
With financing and document preparation completed it’s time to move on to escrow and closing. The escrow agent will complete the necessary title searches, certificates of good standing, UCC1’s, fictitious name searches, and ensure that there are no outstanding liens against your new business.
Once the closing documents have all been signed and the funds distributed to the relevant parties. It’s time to say CONGRATULATIONS and hand you the keys to your new business! There is no greater feeling than knowing that YOU are now in charge of your own destiny.