Buy A Business
Buying a Business could be the most rewarding experience an individual could experience. However, it could also be the most risky if not completed properly. It is important to work with a Broker who can advise you against the pitfalls of buying the wrong business. Our Brokers can help you navigate finding a business, negotiating an offer, understanding due diligence, finding a bank for financing, and finally, closing.  
  
Things to Consider When Buying A Business:

1. Confidentiality is critical
  • If the seller’s employees, vendors, bankers, and customers don’t know business is for sale, business operations remain less affected by change in ownership

2. Buy a business you like and can manage
  • You can look forward to going to work every day
  • You don’t have to know everything – the seller can help train and provide consulting
  • Only general knowledge and business skills are important

3. Key considerations when selecting a business
  • Location
  • Track Record
  • Management
  • Why is the seller selling

4. Don’t expect 100% bank financing
  • Banks are asset-based lenders
  • Banks can’t run a small business if borrower leaves
  • Bankers view small business tax returns differently
  • Buyer should expect to pay 20% minimum for down payment

5. Expect some owner financing
  • Typically, most owners don’t want to do owner financing due to the risk
  • Owner financing demonstrates the seller’s confidence in the business
  • Owner financing provides tax benefits to the seller
  • If there is a default on the note, the seller can step in and run the business
  • Buyer has seller’s goodwill during term of payments

6. Expect to negotiate
  

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