The Buying Process

Commitment

A desire to purchase a business at pricing and terms, consistent with your marketplace, which will fit your needs and abilities.

Disclosure

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

Background Information

You 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.

Review

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

Introduction

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

Meeting

A meeting between you, the seller and your business intermediary 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.

Offer to Purchase

You write, with our assistance, an offer or letter of intent 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.

Present Offer

We present your offer to the seller.

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.

Explanation

Acceptance

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

Mutual Acceptance

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

Inspection/Due Diligence

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

Contingency Removal

You remove all contingencies in the Agreement. All offers contain contingencies that must be removed before the contract is binding.  Typical contingencies include your inspection of the books and records, assumption of the lease and attainment of proper financing.It is now a binding agreement.

Lease Assignment

We work with the landlord to get an assignment of the current lease or new lease for you.

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.

Inventory

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

Transfer of Ownership/Closing