The Nuts and Bolts

The Nuts and Bolts of Buying a Business

You, like every other prospective business owner, have a vision of being your own boss and calling your own shots. A business must fit this vision to be successful for you. The prime consideration in buying a business is to identify your personal talents, likes and dislikes.

The old saying in the real estate industry is: “The three most-important features of real estate are location, location, & location.” While location is important to a business buyer, be aware that track record and management round out the three components of a successful business. The process of buying a business is as follows:

    1. Evaluate the basic information Sunbelt Business Brokers and/or Business Brokers South has provided you on the various businesses that sound interesting to you.
    2. Visit the business (when possible) without identifying yourself as a buyer (incognito) to get a feel for the operation, the location, the facility and the employees.
    3. Make an arrangement through your Broker to meet with the seller and ask questions to understand the history, the direction and the operation of the business.
    4. Do your preliminary evaluation based on the information the seller provided your Business Brokers South Broker and then from your initial visit and meeting with the seller.
“The most-pathetic person in the world is someone who has sight, but has no vision.”
Helen Keller”Do, or do not. There is no try.”
Yoda
  1. Make an offer, assuming that all of the information you have been provided is correct, but be sure to include contingencies that will allow you to confirm this information. Your broker will assist you in writing this offer to protect you as a buyer.
  2. Through your Business Brokers South Broker, negotiate the price and terms with the seller. The seller will probably not accept your first offer, and you will probably not accept the seller’s first counter-offer. Do not become discouraged, stay focused and stay involved.
  3. Once a sales price is agreed upon, make a close investigation of the business, confirming to your satisfaction the validity of your offer. This is due diligence and your opportunity to make the final commitment to your new endeavor.
  4. Have documents prepared for the closing. We suggest that you and the seller share the costs of the closing attorney. This lawyer will not argue the position for either party, but drafts all necessary legal documents to comply with your agreement with the seller.
  5. Close the purchase and began your first day as owner of your own business. You are now part of the American Dream!