The 20 Step Buying Process

The 20 Step Buying Process

 

 

1. Commitment  Your commitment to purchase a business at price and terms consistent with the marketplace.

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

3. Background Information  You provide us with information about yourself, such as a resume and a financial statement. The more we know about you, the more likely we can find a business you will like and the possibility for better terms greatly increases by providing the same information to  Seller.

4. Review  You and your Business Sales Group associate discuss and review various types of businesses and select some that appeal to you.

5. Showing  Your Business Sales Group associate shows you the businesses you are interested in and issues the important factors of each.

6. Meeting  Probably a meeting among you, the Seller and the Business Sales Group associate. This gives you a chance to ask detailed questions you may have about the business, and to better describe your qualifications to the Seller.

7. Offer to Purchase  You write, with our assistance, an offer for the business you’ve chosen. Your offer will be a “contingent offer” meaning it is non-binding until the Seller has met all your conditions. Typically, you deposit earnest money at this time to demonstrate your seriousness to the Seller.

8. Present Offer  We present your offer to the Seller.

9. Background We give to the Seller the Buyer’s background and financial information, Buyer’s experience and point of view in arriving at the offer price, terms and conditions. Favorable background information about the Buyer results in favorable consideration of the Buyer’s offer.

10. Explanation We carefully explain the terms and conditions of the offer to the Seller.

11. Acceptance  The Seller accepts the offer as it is written or makes a counter offer.

12. Mutual Acceptance  When Buyer and Seller agree to all terms and conditions of the sale, the offer becomes a Purchase and Sale Agreement.

13. Inspection  Buyer Meets with Seller at Business Sales Group to examine the financial records of the business. Any questions are resolved here.

14. Contingency Removal  Buyers remove all contingencies of the agreement.

15. Lease Assignment  We work with the landlord to get an assignment of the current lease, or negotiate a new lease for the Buyer.

16. Open Escrow  We provide all necessary documents to the transferring agent so they can prepare the closing papers.

17. Lien Search  In most states the escrow attorney performs a lien search on the business to identify any secured creditors.

18. Inventory  Arrangements are made for the Buyer and the Seller to count and price the inventory (if required).

19. Closing  All parties meet to sign documents.

20. Transitional Training  In order to insure a smooth and successful transition of ownership, it is customary that Seller continues to work with new Owner for a period of time following the closing date. This period varies depending upon the size and complexity of the business. Image

About Rick Krebs, CPA - Business Valuations, Mergers & Acquisitions

Rick Krebs - Mergers and Acquisitions Professional, Business Broker, CPA. Rick brings a unique blend of sales, entrepreneurial, and financial experience to Business Sales Group. He began his career as a CPA, working in Nevada and Utah where valuable financial experience was gained. He uses those skills every day. He graduated with a Master’s of Science Degree and Bachelor’s Degree from Utah State University. As a business owner he started Liberty Mortgage, a mortgage bank licensed in 23 states nationwide. He eventually sold the successful company to an investor from California. He has been in the M&A space helping people sell their businesses since July, 2010. During his first year as a business broker with BRC, he listed and sold more businesses than the entire office combined. As a sale-side and buy-side advisor for Mergers and Acquisitions transactions Rick's advisory, accounting, and management skills are invaluable when advising sellers as they maneuver the intricate details of the deal through closing. Rick is also a CNA (Certified Negotiation Expert) which helps him negotiate the most favorable terms for clients in a transaction. ​ Rick was quoted by FORBES as an expert sales-side advisor who helps Sellers avoid the pitfalls of selling a business.

Posted on May 24, 2012, in Company News and Announcements. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: