BUYING A BUSINESS: IT’S A WHOLE NEW BALL GAME
So you you’ve come to VR in Los Angeles, CA ready to buy a business but, unless you’ve had experience in the past, you will find this to a quite the undertaking with not a clear idea of what to do or where to start. That’s is specifically the reason why we advise you to take a careful look at the overall process of buying as we explain here. Even if your quiet the veteran in these kind of affairs, we here at VR in Los Angeles, CA would suggest that you still sharpen your knowledge of the process buy quickly going over it once again.
Getting Started
Most usually start the first step by a telephone call, an email, a fax, or some other way of contacting our office and inquiring about our services. Sometimes the prospective Buyer is a Corporation, Private Investment Group or a sophisticated Private Investor who has a very definite idea of the type of business wanted. But usually it’s a first time buyer who starts the phone call or contact by asking “what kind of businesses do you have?”
Well, that is sometimes a varied response for we usually have many businesses from many different industries listed as selling or for sale. The best direction we advise in narrowing the search is finding out some information from you. In most cases, information is usually required to determine the applicability that meet yours and the businesses needs. So do not be alarmed if we begin to ask some background info about you, the potential buyer.
So we ask that you please be patient and understanding when we ask typical questions such as "How many days per week are you comfortable working?" and "How much cash do you have for a down payment?" and many other questions. We're not just being nosy: We're narrowing your search and saving you time and aggravation. Our web site Buyer registration offers a message block that is a great way to narrow your search and help us help you find the business of your dreams.
Defining the search: Non-confidential Summaries
So we’ve talked for a while and we can start narrowing our search to non-confidential summaries.. At this point, we communicate non-confidential summaries of our exclusive opportunities to you in a number of ways. You can search our business for sale on our home page for an exclusive summary of the businesses for sale. VR non-confidential summaries show our profile number, a description of the business, a summary of financial performance, the reasons why we think it may be a good opportunity and the asking price. We recommend that at this point you focus on the business and not on its financial performance or price. It's far more important now to find a business type you'd enjoy owning.
Focusing on a few: Digging Deeper
At this point in your search, you'll find yourself holding one or more non-confidential summary sheets for businesses you want to know more about. This "digging deeper" step takes your business opportunity search to a new level.This new level is one of mutual trust and obligation between you, VR and the Seller(s) of the business(es) you're interested in. Now you're being exposed to the specifics about the businesses you've been considering and your agreement to keep this information confidential is required. Before we send you confidential information, we require you to send us your Buyer Profile and we require you to sign a Non-Disclosure and Confidentiality Agreement. When you return these documents to us, we'll divulge to you the name and address of the business you're interested in. You obtain a copy of these documents by selecting the “Non Disclosure Agreement” button and then printing the documents.
The Business Profile: The Facts, & More:
A big part of our job on behalf of the Sellers we work with is to do the work of selling their business while affording them the time to run their business. This means that we will work with you to answer your questions about the business before we introduce you to the Seller. We accomplish this in several ways.
The Business: Face to Face
After reading the VR Business Profile and reviewing the financial data on the business you’re interested in, you should be prepared to make an offer for the business. If not, your VR representative will answer further questions and may, if indicated, set up a meeting with the business owner prior to your making an offer. This is an important step. Not only are you learning more about the business from the person who knows the most about it, you are also seeking to tell the business owner as much about you as possible since you may be seeking installment terms from the business owner. Often, Buyer credentials are presented at this time. The most important element in this process is the VR Business Profile. This report on the business you're interested in is written to give you the information you need to decide whether or not the business is right for you.
Making An Offer:
After touring the business, the next step is making an offer for the business. Making an offer is not a final step. In fact, it should be viewed as the first of several steps, each of which bring the Buyer and Seller closer to completing the transaction. Since this is a privately held business, the Buyer is obligated to make an offer before seeing the business' internal financial records. The Buyer must understand that their offer is always contingent upon the Seller proving his or her representations. Due diligence is costly and time-consuming, and it must be done only after an agreement on price and terms is reached.
It's the Seller's responsibility to prove everything to the Buyer. Put another way, your agreement on price and terms will be "non-binding" until you've had the opportunity to see all financial records and we have removed all contingencies
Terms. Price, down payment and agreed-to financing (interest rate, period, etc.). Contingencies. Approval of books and records, equipment, inventory, assignment of leases or loans and any other items that the Buyer requests to be incorporated into the structure of the agreement.
Escrow & Closing: Escrow typically takes about 3-4 weeks. After escrow receives the signed instructions, the escrow officer will contact government tax agencies for clearance and publish your fictitious name filing, enabling you to open business and banking accounts. Also during this time a Notice To Creditors will be published allowing anyone with a claim against the business to step forward.
You're In Business: Congratulations Finally, the big day arrives and you open the doors of your business for the first time. There is no bigger thrill, no better feeling than knowing that you are in control of your destiny.
When you work with VR, we guide you along the way and help make your transition to business owner stress free and simple. So, now is the time to go back to our "Search Businesses" section and get started on your search for your part of the American dream.