Buyers Steps:
- Determine interest in a business. The buyer determines that a particular business is the kind of business they are interested in owning.
- Submit Confidentiality Agreement Most sellers are reluctant to share detailed information about their business without your assurance that you will hold the business information stricly confidential (meaning that you will not divulge that the business is for sale or the details of the business operation to anyone and particularly to the employees. Please complete a confidentiality agreement and fax this back to us at (231) 932-0684.
- Provide Financial Statement -- Most business transactions require 20% of the purchase price due at closing. We will need documentation of your ability to financially handle this amount, either from a financial statement or a letter from a bank or investment advisor. With this information, we can assist you in pursuing financial options for the purchase of the business. All financial information you disclose will be kept in strictest confidence and will not be shared with anyone outside our offices, including the sellers. When completed, please fax this back to us at (231) 932-0684.
- Review Detailed Information -- When we recieve your paperwork, we will send you, electronically, an information package called a Confidential Memo. This package is detailed enough to help you decide if you wish to continue pursuing the opportunity but clearly not enough to obtain loans.
- Prepare your questions for the owner -- As you think of questions, please email us or call us. We will assist you in getting the information you require.
- We arrange an on-site meeting for you with the owner -- We will arrange a meeting for you with the owner as well as a tour of the facilities. Please be aware that most business owners are not telling their employees of the impending sale, so any company tours will be done so not to arouse the concerns of employees or customers.
- You prepare your Purchase Agreement -- While we can supply a standard form, you may want to customize your purchase agreement with your attorney. A purchase agreement is a formal contract, secured with an escrowed payment, to purchase the business contingent on certain conditions: i.e. financing, inventory verification, asset valuation, verification of financial reports and tax returns, environmental assessments and the like. This purchase agreement is signed by both buyer and seller.
- You conduct Due Dilligence -- All conditions identified in the purchase agreement are examined during the due dilligence period (usually taking 30 days), including, in particular, the securing of financing. We help most buyers explore creative options of financing their purchase. Bue diligence, paid by the buyer, may include outside services such as appraisers, equity valuation experts, or accountants.
- Closing -- At the conclusion of due diligence, the official transfer of ownership usually takes place at an attorney's office to ensure that the requisite documents are prepared, completed, and filed correctly. The cost of this closing is shared equally by the buyer and seller.
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