Buy a Business

The Buying Process

The thought of purchasing a business for many can be both exciting and overwhelming at the same time.  For some, the purchase of a business is to fulfill a lifelong dream of financial independence.

Some buyers are just looking to purchase a business to provide an income and others are looking to grow their current business through acquisition.

The following is a brief high level overview of the buying process.

Help Me Find My Business!

    The Valley Business Broker Steve Barnett

    The Process

    You make a commitment to purchase a business at a price and terms consistent with the local marketplace, and consistent with your needs and abilities as a business owner.
    You sign an agreement promising not to disclose the confidential information we provide to you on the specific businesses we discuss. Confidentiality Agreements are specific to particular business and must reference that business to be valid.
    You complete the Buyer Profile to provide us with information about yourself. The more we know about you, the more likely we can find a business you will like. The more information we provide the seller, the better the terms he or she will consider. We require a buyer profile in addition to the Confidentiality Agreement prior to disclosing any confidential information for any of our business listings.
    Together we discuss and review various types of businesses and select some that appeal to you.
    We introduce you to the businesses you may be interested in and discuss the important factors of each.
    A meeting between you, the seller and us may take place. This gives you the chance to ask questions about how the business operates and to describe your qualifications to the seller.
    You will be provided income statements and balance sheets for the last 3 years for the business. This will provide you a detailed view of the revenue and expenses to further evaluate the business.
    Either your attorney or The Valley Business Broker will create an offer or letter of intent to purchase the business based on the terms and conditions you specify. You may be required to put up earnest money to demonstrate your seriousness to the seller. Most offers are contingent upon your inspection of the books and records of the business, to verify that it has been described to you accurately. The offer is not binding until you are satisfied and remove all contingencies.
    We present your offer to the seller.
    We give to the seller your background, financial information, experience and point of view in arriving at the offering price, terms and conditions. Favorable background information about you will result in favorable consideration of your offer.
    We carefully explain the terms and conditions of the offer to the seller and decision makers.
    The seller accepts your offer to purchase as presented or submits a counteroffer. When buyer and seller agree to all terms and conditions of the sale, the offer becomes a Purchase and Sale Agreement, contingent on your successful inspection of the business and its books.
    You meet with the seller of the business to examine its financial records. Any questions and concerns you have will be resolved at this time.
    If you are satisfied with your inspection of the business, you remove all contingencies in the agreement. It is now a binding agreement.
    We work with the landlord, if any, to get an assignment of the current lease or new lease for you.
    We provide all documents to the escrow agent so they can prepare the closing documents. They conduct lien searches through theCalifornia record systems, and also make arrangements to assign any notes or equipment leases.
    Arrangements are made for you and the seller to count and price the inventory (if required).
    The sale is complete and the business ownership transfers from the seller to the buyer.
    The training period from the seller starts and you are on your way to financial independence.