Ten Step
Process to Buying a Business
THE BUYING PROCESS
- Evaluate the basic information on alternative businesses that sound interesting to you.
- Visit the business (if possible), without announcing yourself as a buyer (incognito) to get a feel for the business and the location.
- Sunbelt will arrange a buyer/seller meeting.
- Do your preliminary evaluation, based on the information provided by the seller to Sunbelt and to you.
- Make an offer; assuming that all of the information you have been provided is correct but include contingencies which will allow you to confirm such information.
Sunbelt will show you how to write an offer to protect you as the buyer.
- Once the sales price is agreed upon, make a closer investigation of the business confirming to your satisfaction the validity of your offer. An initial deposit of ten percent is payable to the
escrow account.
This deposit is fully refundable if the contingencies are not met.
- Have your accountant review the financials
- Have documents prepared by attorneys for closing that complies with the agreement that a buyer and seller have reached.
- Close the purchase and begin your first day as the owner.
The seller will assist you with an orderly transition.
- Meet the staff, suppliers, customers and celebrate.
CONFIDENTIALITY OF BUSINESS SALE
Prospective buyers are required to sign a confidentiality agreement prior to learning the identity of the business and reviewing confidential business information.
Sellers are usually concerned about confidentiality because of:
- Fear of losing clients
- Fear of losing employees
- Actions by competitors
- General disruption caused by uncertainty
Therefore, buyers must treat confidentiality seriously.
Buyers should not:
- Talk to employees, clients, suppliers or competitors without approval from the seller.
- Disclose the fact that the business is for sale except to professional advisors.
- Make direct contact with the seller unless approved in advance by Sunbelt.
Maintaining confidentiality is also advantageous to the buyer because a smooth transition without problems is good for business.
Sunbelt will also maintain buyer confidentiality and not disclose to anyone that the buyer is trying to make an acquisition.
However, the buyer's identity must always be disclosed to the seller in order to receive information about the business. |
