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1. Seek Out A Business
First step
fill out our
Confidentiality
Agreement along with financial
information. We will then give
you some general information on the
Businesses that meets your needs.
Once we have all the paper work
properly filled out we will supply
you with the locations of said
businesses. You will visit the
prospective business as a customer
during regular business hours so you
won’t stand out. Under no
circumstances will you ask any
questions or talk to any employees.
You are there as a customer only.
If you have interest in this
business, GRB will set an
appointment for you with the Owner
(usually before or after closing so
as not to let any employee’s know of
the sale). You will at that
time be able to tour the facility
and have the opportunity to ask all
the questions necessary. It is
best not to discuss the price and
terms of sale with the business
owner.
2.
Find A Realistic Value
Once you
find a business that suits your
dreams, it’s necessary to come up
with a realistic value. There
are two types of sales, the first is
an asset sale or a distressed sale
(anywhere from $20,000 -$75,000)
basically for the equipment, lease
anything of value. The second is a
profitable business sale, which must
be formulated through cash flow.
That method can be anywhere from 1 ½
to 3 multiples of the net.
For examples, if a business nets $
100,000 a year and the multiple is 2
the value of the business is
$200,000. There are also other
variables that must be added to the
equation, such as the lease,
location, how much equipment, name,
concept and good will are just a few
things that should be factored into
the sale.
The
business owner does not want to go
through a detailed due diligence
process without knowing the buyer is
serious and willing to make an
acceptable offer to purchase.
At this point Broker will write the
Offer to Purchase Agreement, with
all of its contingencies and due
diligence period. Once Earnest
Money is received, buyers will be
furnished with all financials,
lease’s, equipment list etc.
The Business Broker will help in the
negotiations between you and the
seller to secure an acceptable
agreement that is fair for both
parties. During the due
diligence period, the Business
Broker will coordinate requests for
documents and assist you in
arranging meetings with owners up to
the closing.
3.
Seal The Deal
The Closing
process will be a walk in the park.
GRB will get a closing attorney to
conduct lien searches, draw up bill
of sale and other closing documents
for the parties to review. A
cashiers check will be required at
closing for whatever amount is due.
GRB will coordinate the buyer,
seller their advisors, landlord, the
attorney and anyone else involved
with the transaction.
Buying
an existing business can be a very
wise decision for a true
entrepreneur. A proven track
record, experienced employees, good
supplies, loyal customers and the
ability of financing, makes buying a
profitable business easier and safer
than other investments. GRB
will help you fulfill your dreams,
owning a successful business.
“TO
THE GOOD LIFE” |
