For many, buying a business is a major decision and one that you may only do once in a lifetime. It is exciting and daunting all at the same time, and requires some peace of mind . This peace of mind can come from a structured and proven process to buying a business.
By working through a Business Broker, you will get complete information on every listed business. This includes details about the marketing, operations and human resource components of the business and a thorough financial depiction of the business.
Define Acquisition Criteria
This is assuming that you have yet to find a specific business that you are interested in. At this point the completion of a buyer profile is most helpful as it allows a Broker to understand the type/size of business you are interested in, your skills and experiences and your financial capacity to purchase a business.
A buyer registration and confidentiality agreement can be completed at this stage so that when a business opportunity arises we can promptly disclose information about the business to you.
Identify Business Opportunities
As a Business Broker, we have access and knowledge of numerous business acquisition opportunities in the province. We are well networked to provide a buyer with the maximum number of opportunities so that a suitable business that meets your needs can be found.
We will compile a list of potential acquisition candidates and review current business opportunities currently for sale in the marketplace. More complete information can be provided on those businesses of interest. It is important that you provide feedback to the Broker on opportunities as it helps the Broker to understand what you are looking for in order to successfully find a business with a great fit.
Set up Meeting with Sellers
If after receiving complete information on the business opportunity, you are still interested in pursuing, we can arrange a confidential meeting with the owners of the business. This can be used as a forum to ask the seller specific questions about the business, and the seller may have questions for you as well.
Evaluate Business Opportunity
Now is your chance to thoroughly evaluate the business opportunity. Ask for any additional information and financial data that may help in making a decision. It is at this time that you can get other advisors involved to help in the evaluation process - this can include a lawyer, accountant, financial planner and banker.
Make an Offer to Purchase
An offer to purchase is the next step if you are serious in moving ahead with the acquisition. The offer can either be drafted by the Business Broker or with the assistance of a lawyer. It typically includes price, terms, and any contingencies that need to be satisfied prior to closing.
The responsibility of investigating a business lies with a Buyer. If the offer is accepted by the Seller, this stage is where you, the Buyer, and with the help of any outside advisors you deem necessary, conduct a more in-depth investigation into the business to ensure you are buying what you think you are buying. This is also the time where any contingencies outlined in the offer are researched and efforts to satisfy them take place.
Closing & Post Closing
A business acquisition can move into the closing stage, once: due diligence has been conducted and you are satisfied with the findings; and all of the contingencies outlined in the offer have been satisfied.