Buying a Business How To

Initial Consultation

Assistance with determining the businesses suited to your financial and lifestyle expectations. There are a very wide range of businesses for sale and, in most cases, only a relative few (3 -5) fit the needs of the buyer and merit the serious investigation by a potential buyer. Sunbelt can help reduce the stress and aggravation associated with what might seem like looking for a needle in a haystack.

Box of Reality for Business Buyers

Contact us for a free, no obligation consultation so we can assist you in completing the “Buyer's Box of Reality”  for business acquisition. The Buyer's Box of Reality exercise will give you an immediate answer to the question “what size businesses should I be looking for?”.  It will also give you insight into how business acquisitions are financed and what you can expect (or not expect) from financial lenders. This consultation usually takes about 1 hour.

Once the Buyer's Box of Reality has helped you define your financial parameters your Sunbelt consultant can provide you with profiles of the businesses that fit into your personal Box of Reality. You can then decide if the industry, geographic location and business operating characteristics meet your personal objectives.

Confidentiality for Reviewing Specific Businesses

Having identified a few businesses that have passed the above tests you will be asked to sign a Buyer's Non-Disclosure agreement in order to get specific details about any individual businesses. Confidentiality in the business acquisition process is very important. Business owners do not want their customers, employees, vendors, etc. to know they are selling the business. You can see how this would be very disruptive and could damage the business which is not good for the seller nor the buyer.

Meeting with the Seller

After determining that a business meets your financial, industry and geographic parameters you may wish to meet with the seller for a discussion of the seller's situation and to look at the business. Your Sunbelt consultant will arrange this confidential meeting. At this meeting you may want to focus discussions on what the seller's day-to-day role in the business is and determine how your skill set could improve the business.

Preparing an Offer

Your Sunbelt consultant can assist you with preparing a CONTINGENT offer. The concept of a contingent offer is important. With a contingent offer you would be proposing to the seller the price, terms and timing of your purchase of the business IF  you are satisfied with the results of due diligence. That's why the offer is contingent – because once you and the seller agree to the contingent offer you can enter into full due diligence where you will have access to very detailed information normally including tax returns, leases and other items you may deem important. Common contingencies in these offers are your satisfaction with financials, tax returns, any lease assumptions, your getting financing on terms acceptable to you, the seller providing a non-compete agreement, etc. During this due diligence period, if you are unable to evaluate the business on your own you may wish to retain an accountant to assist you.

Closing the Deal

There are many, many details to work out for the closing and your Sunbelt consultant will assist you with gathering the information. Transactions are normally closed using an independent 3rd Party closing company that specializes in completing the paperwork, making sure assets are transferred free and clear of debts with clear title, etc. If you are unable to understand the documents you should retain an attorney to assist you to make sure you completely understand the transaction you are entering into.

In Business for Yourself

Having completed the above you will now be the owner of your own business which we hope is very successful and allows you and your family the good fortunes of ownership enjoyed by millions of entrepreneurs in America.