Business Sales Process
Let Sunbelt Business Advisers and Business Brokers South navigate your way through the maze of identifying and evaluating a good business at a great price. We can help you buy a business that suits your purchase criterion and, at the same time, insure you obtain great value.
Our representation of the business buyer in the purchase transaction typically includes the following services:
1) Client Interview
We determine your acquisition objectives and obtain pertinent information about your background, experience, management skills and your financial comfort zone as to the amount of investment. Thereafter, we assemble general and financial information to present you as a qualified purchaser thus enabling you to react quickly to each targeted business opportunity.
2) Conduct Extensive Search and Identification of Specific Business Opportunities
There are many channels which we can utilize to locate and identify qualified business opportunities. We have developed a comprehensive marketing network of professionals aimed toward locating qualified businesses for sale that fit your established criterion. We also maintain our own database of businesses for sale. Lastly, we have access to over 100 different franchises.
3) Screen Each Business Opportunity
Pre-qualification of each business opportunity involves:
- Communicating with each business seller and/or the seller’s representative and providing a package of materials created on behalf of each of our buyers which includes a Non-Disclosure Agreement, Buyer Profile and/or resume and Buyer Financial Statement, so as to present our client as a viable and serious purchaser.
- Obtaining and reviewing pertinent business information and records of each business opportunity pursued.
- Performing a preliminary evaluation to determine whether the business represents a valuable opportunity and meets the client’s purchase criteria as outlined during the client interview.
4) Business Valuation
We will assist you in ascertaining the correct fair market value of each business opportunity we identify in order to determine whether the list price is above or below market value. To do this, we evaluate cash flows, assets and liabilities and the intangibles inherent in many businesses.
The majority of business sold are financed through seller financing. We can assist you with negotiations on seller financing to show your credibility and get you the best terms. We also work closely with SBA lenders that specialize in financing new business purchases. Lastly, not many people know about it, but you can purchase a business with your 401K without having to pay a tax penalty. This is done through special Tax Attorneys and Accountants. We can point you in the right direction if this is a path you are interested in taking.
6) Negotiations and Screening
Negotiations between the parties can often reach roadblocks. Sunbetand BBSouth provide skilled negotiation techniques to achieve a successful transaction and resolve issues as they arise to control all aspects of the process until a favorable resolution is attained.
7) Offer to Purchase
Once you are ready to make an offer Sunbelt and BBSouth will assist you with making a professional written offer. We already have the appropriate forms and documentation, which makes the offer process smooth and easy.
8) Offer Acceptance or Counter
The seller may then accept the offer as written or respond with a counter-offer. In the event of a counter-offer, we will assist you to understand the nature and terms of the counter-offer and guide you with respect to an appropriate response. Once both parties agree on the basic terms and conditions, a final purchase agreement is prepared and reviewed by both parties.
9) Due Diligence
The offer is usually contingent upon the business buyer’s professionals verifying the accuracy of the seller’s financial and operational representations. The buyer begins the process of due diligence and inspects detailed accounting records and business information. The due diligence process is the most important step in ensuring that the transaction is completed in a successful manner. Our professionals will guide and facilitate the due diligence process to ensure that this step is completed successfully.
This is the point at which you can be assured that you have realized your goal of buying a business – the sale process is completed. The drafting of the closing documents are coordinated to ensure that they are prepared and tailored to meet the individual needs of the buyer.
11) Transition Period
This typically involves a period of cooperation in which the buyer will receive assistance from the business seller with training and in effectuating a “seamless” transition. During this period you will be introduced to all key relationships and receive any proprietary information needed to successfully operate the business. This is a very important piece of the entire process and the time required varies from business to business and market to market.
Contact us today to get started.