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1452 Hughes Rd. Ste 215 Grapevine, TX 76051 Phone: (469) 677-8249 Fax:
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The Buying Process

Contact VR Business Brokers (469) 677-8249

As any VR business intermediary will tell you, buying a business gives you a greater chance of success than starting one from scratch. 80% of new businesses fail in the first three years due to factors such as poor location, low product quality, under-capitalization and lack of management skills. Buying an established business will provide you with a stable location and an existing customer base and product.

Below are twenty steps to following during the buying process:

  1. Office building in Downtown Dallas
    Commitment: Your commitment to purchase the business at price and terms consistent with the marketplace is a major undertaking.

  2. Non-Disclosure Agreement (NDA): You sign a Non-Disclosure Agreement thereby promising to maintain confidentiality for all the information provided to you on the businesses we review, discuss or present.

  3. Buyer Profile: By completing the Buyer Profile, you are providing us with the information about yourself such as a resume, financial statement and available capital to invest. The more we know about you, the more likely it is we can find a business for which you are qualified to acquire. The more information we provide to the seller and financing sources, the stronger your negotiating position.

  4. Opportunity Review: Together we discuss and review various types of industries and specific businesses, and select some that appeal to you and which are qualified to acquire. You will have the ability to review confidential business profiles that, in part, summarize the business, its' financial information, facility and lease information.

  5. Business Presentation: We present to you the businesses you are interested in and discuss the opportunity surrounding each. These initial presentations can vary from digital presentations in our boardrooms to actual on-site visits as the information process moves forward. It is critical to remember when visiting any business, that the fact it is for sale is highly confidential and you must be careful to maintain this confidentiality during the visit.

  6. Meeting with the Seller: A meeting between you, the seller and VR may take place if you are interested in obtaining more information regarding the business, and seriously consider it as a candidate for acquisition. This gives you the chance to ask questions you may have about how the business operates and allow the seller to feel comfortable in who is acquiring their business.

  7. Offer to Purchase: With the assistance of VR, the next step is to prepare an Offer to Purchase on your standard Purchase Agreement for the business. A Letter of Intent may be used on larger valued transactions. An Offer to Purchase or Letter of Intent will include an earnest money check along with contingencies that are to be satisfied during Due Diligence.

  8. Present Offer: VR presents your offer to the seller and takes the time necessary to explain the terms and conditions of your offer to the seller and their decision makers.

  9. Background: With your approval, VR provides to the seller your background, financial information, experience and point of view in arriving at the offering price, and terms and conditions. Favorable background information about you will result in favorable consideration to your offer.

  10. Acceptance or Counter Offer: The seller will either accept the Offer to Purchase as it is written or will present a counter offer. Once buyer and seller agree to all terms and conditions of the sale, sign all counter offers and amendments, if necessary, you have mutual acceptance and it then becomes contingent Purchase Agreement.

  11. Due Diligence and Inspection: At this stage the examination of financial records and other operational, inventory, management and lease reviews take place. The due diligence and inspection stages are critical for the buyer to confirm that what the seller has claimed to be truthful and accurate, and meets the conditions of your offer.

  12. Contingency Removal: You remove all contingencies as each is resolved or met in the Agreement. Once completed, it is a binding agreement.

  13. Escrow: Your VR Intermediary will send the Purchase Agreement and other documents to the escrow documents and deposits the earnest money deposit check into their trust account. Escrow is "open" as soon as both buyer and seller have signed the escrow documents. Depending on the state in which you live or are acquiring the business, this process may be handled by parties other than an escrow company. VR can inform you - in detail - what to expect in your market.

  14. Lien Search: In most states, the attorney for the buyer or the escrow company performs a lien search on the business to identify any secured creditors. Liens to secured creditors will be removed prior to closing. During the lien search, there will also be an investigation with state and federal agencies for tax clearances.

  15. Business License: During the escrow period the buyer, with their aid of their advisors, will be obtaining liability insurance for the business, workers' compensation insurance (if required), all necessary business licenses, employer identification numbers and form the appropriate business entity.

  16. Lease Assignments: The seller's landlord may require the assignment of the existing lease or an entirely new one. You will, with the seller and the landlord, obtain the necessary documentation for closing. This is another critical step and one of your remaining contingencies. It is important to provide the landlord with a complete personal financial statement, resume and lease application promptly.

  17. Note and Equipment Lease: VR will work with you, the seller, and an escrow officer to have an agreed upon notes and equipment leases assigned to you or your new corporate entity.

  18. Inventory: Arrangements are made for you and the seller to count and price the inventory if it applies to the business you're acquiring. If it is a large or complex inventory it may be necessary to outsource this function to an inventory service.

  19. Closing: Signing of the final closing documents may be done at escrow in person or, in many cases, via courier, e-mail or fax. These arrangments will be agreed upon by all parties prior to closing.

  20. Training: Agreed upon training with the seller commences after the closing and during the change of position. The terms and length of the seller involvement training is agreed to as part of the executed Purchase Agreement.

Note: Both the NDA and Buyer Profile are required before we disclose confidential information regarding a business.

  • (469) 677-8249
  • 1452 Hughes Rd. Ste 215 Grapevine, TX 76051

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