Buyer FAQs

• How do I get started?

• How do I find a really solid business?

• How do I get financial information from the seller?

• What is the business really worth?

• What strategy should I use when making an offer?

• What is the right price?

• Who will write the purchase and sale agreement?

• When should I get a lawyer or accountant involved?

• How do I get the lease I want?

• How can I be sure this is the right business for me?

VR Business Brokers of Fort Worth/Arlington can help you find the answers – and the right business to buy. Over the last three decades, we have facilitated the sale and purchase of more than 100,000 small, privately owned companies. By working with VR Business Brokers, you gain the advantage of dealing with the largest and most experienced business brokerage organization in the world. We can introduce you to more good business opportunities than anyone. We apply our experience and know-how in representing both business buyers and sellers. For example, one of the services that we offer to buyers is a training class to educate them about how to buy a business and what to expect along the way. This often thwarts last-minute misunderstandings that can kill the deal, wasting everyone's time and resources.

Pay for Value without Overpaying

Through a variety of services, strategies and methodologies used byVR Business Brokers of Fort Worth/Arlington we can help ensure that you don’t overpay for the small business that you buy. One of the most important services that we offer to potential buyers is an assessment of the value of the business. VR Business Brokers of Fort Worth/Arlington employs several methodologies to assess the value of a business, including rule-of-thumb evaluations and professional evaluations that we do in house. We also have access to professional third-party appraisers for larger or more complex transactions that require this type of valuation. For more information on how we determine a company’s values, please visit the What Is My Business Worth section of our website.

Three Options to Consider in Buying a Business  

As a prospective business owner, you should consider three strategies in buying a business:

Buying an established business instead of starting one from scratch

Looking for an established business with some problems that you can solve

Providing the sellers what they want to see

Buying an Established Business Instead of Starting One

If you want to get into business, let someone else take the risk and the high cost of starting a company from scratch. There are big advantages to buying an established business. First, as the new owner, you have immediate cash flow as well as two of the necessary components of success:

·                A proven location (an established customer base)

·                An established product or service

Using this strategy, you don't have to build a business. You simply take over an established business and provide the third key ingredient – management.

Looking for an Established Business with Some Problems that You Can Solve

Some buyers won’t settle for anything except the ideal business: one with high profits, low risk, great potential and no problems and one that is easy to run. If the prospective buyer ever finds a business like that, the price will be very high and so will the competition. Well-funded industry professionals and corporate buyers will be vying to purchase the business, too.

At the other extreme of the spectrum, some buyers look for very cheap businesses that are often already closed down or about to fail. These businesses are very risky and may involve significant additional investment to make them profitable. They are usually best left to industry professionals or corporate buyers who can afford the cost and manage the risk.

Most of the Main Street businesses VR sells are in the "Safety Zone." These businesses are priced lower than the ideal business, if that type of company even exists, but are much less risky than the failed or failing business. The key is to look for a business that is established and that has some problems you can solve. The business will be affordable and you can take all the profit from the improvements that you make.

Providing the Sellers with What They Like to See

Buying a small business in not easy or simple, and you will have questions and concerns. For the current owner, selling a business involves just as many questions and concerns. By being aware of the seller’s needs and alleviating some of his or her concerns and uncertainties, you often can obtain a significantly better price and terms. Here are some of the things the seller wants to see from you as a prospective buyer:

·       Providing a Resume and Financial Statement - The more information the seller has about your experience, qualifications and financial situation, the more likely he/she will accept the offer you make. When a seller extends financing to you, the seller is acting as your banker. He/she needs to feel comfortable with you. Remember, once sellers accept your offer, they are committed. However, you typically still have contingencies that must be addressed before you can move forward.

·       Extending a Fair Offer - A fair offer is one that realistically satisfies the needs of both you and the seller. Sometimes that results in an offer, which may be quite different from the seller's asking terms. At VR Business Brokers of Fort Worth/Arlington we help you develop a win-win offer. Along that same line, we want to warn you about extending a “low ball” offer. These offers quite likely will damage your relationship with the seller and could possibly reduce your chances of getting the business for a fair price.

·       Making a Reasonable Down Payment - Every buyer wants to conserve cash, but a very low down payment can suggest a lack of commitment to the business. The number one concern of sellers is the safety of taking a note from the buyer. If the seller questions a buyer's commitment or seriousness about the business, the seller may not negotiate seriously with that buyer.

·       Resolving Contingencies - It's to everyone's advantage to proceed through the contingency removal phase in a quick, but thorough, fashion.

When you consider buying a business, you are undertaking a very important and major step in your professional and personal life. VR Business Brokers of Fort Worth/Arlington we work with you so that the business you buy is the right one for you, both in the short and long run.