STEPS TO BUYING A BUSINESS:

Buyer Signs a Non-Disclosure Agreement / Confidential Buyer Profile – Buyer fills out the Non-Disclosure Agreement and Confidential Buyer Profile and broker begins a search for available businesses that meet experience, price range and comfort level.  

Broker Provides Buyer with a List of Businesses for Review – Buyer reviews the business listings and decides which businesses he/she is most interested in.   

Confidential Business Opportunity Summary is Released – The broker then gives a more detailed Confidential Business Opportunity Summary on each of the businesses the Buyer is interested in.

Buyer & Seller Meeting – Buyers that have reviewed the Confidential Business Opportunity Summary and are interested in pursuing the sale of the business are then invited to a confidential meeting with the Seller to view the operations and ask questions about the business.

Offer Presented by Buyer – Interested Buyers are encouraged to write and present an offer which is then forwarded to the Seller for review.  The Seller can then either accept the offer as written or write a counter offer with the help of the Business Broker.

Offer Acceptance – Buyer and Seller agree to all the terms and conditions of the Purchase Agreement.  This includes any contingencies or conditions the Buyer may have attached to the agreement that must be removed or satisfied before closing.

Open Escrow – Signed purchase agreement and a pre-negotiated earnest money deposit from Buyer is placed in a third party escrow account.  The Escrow Agent will perform a lien and judgment search on Sellers business.  Any liens or judgments that arise must be satisfied before closing.  Closing costs are split between Buyer and Seller.

Due Diligence Period – Buyer and their advisors begin a detailed review of the business, including financial records, tax returns, equipment leases, lease assignments, etc.   On average, a Buyer’s due diligence period can last anywhere from 2-4 weeks.  This time period is also used by the Buyer to remove or satisfy any and all contingencies that may have been attached to the agreement.

Closing – All contingencies to the agreement have been removed or satisfied.  Buyer and Seller meet at the Escrow office to sign and execute all closing documents.  Seller receives closing funds and Buyer is the new owner of record.

Transition & Training Period – Buyer and Seller begin a pre-negotiated period of training and transition.  The transition period normally can last anywhere from 2 to 4 weeks.