The Buying Process
Bridgepoint Business Brokers offers professional expertise in sourcing acquisitions, complemented by guidance and education to facilitate the transaction. We will compile all of the information necessary to make an informed decision.
We can reduce your risk by representing you in the acquisition process using the following proven steps:
1. Define Acquisition Criteria
- Obtain detailed information on your skills, experience, financial capabilities, interests, and objectives.
- Discuss and review various types of industries and specific businesses, selecting some that you find appealing and are qualified to acquire.
- Sign confidentiality agreements.
- Research and compile a list of potential acquisition candidates.
- Evaluate this information and identify optimum business opportunities.
- Target and review specific business opportunities
3. Contact candidates to determine interest
- Initiate contact with the principals of targeted acquisition candidates to determine their interest in selling.
- Qualify the opportunities.
- Select optimum business opportunities.
- Receive detailed information on the businesses of interest and set up showings with the seller. We will refine your acquisition criteria and visit opportunities until you decide on a business to purchase.
4. Buyer and Seller Meetings
- Arrange a confidential meeting with principals of acquisition candidates.
- This provides an opportunity for the buyer to ask questions about certain aspects of the business. Likewise, the seller may have questions for the buyer and the meeting allows them to feel more comfortable in who is potentially acquiring the business they have built.
- Select a business opportunity that you would like to pursue for purchase.
- Analyze details of the business using the financial data of the candidate.
- Determine the business' fair market value.
6. Offer to Purchase & Negotiations
- At this stage, the buyer must make a decision to move ahead with the acquisition. We will work with you to prepare an initial Letter of Intent. This document includes the price, terms, and any contingencies that must be satisfied in order to close the sale.
- Present Letter of Intent to seller.
- Negotiation of the terms and structure of the transaction begins. Both parties negotiate a letter of intent, which is non-binding and forms the basis for the definitive agreement. It outlines the deal structure, the purchase price and form, payment terms, and closing contingencies.
- After this step is completed, you should have a Letter of Intent that clearly spells out the proposed terms, subject to due diligence.
7. Facilitate Due Diligence
- Once the Letter of Intent is accepted by the seller, we will begin a due diligence investigation where we fully inspect that the owner's representations are accurate. The seller will make available all financial and operational data necessary to support the information provided to the buyer, including: tax returns, accountants' statements, bank records, accounts receivable and payable records, employee records, and customer information. The goal is to be able to satisfy the purchaser's questions and concerns about the deal so that, in the end, there is a fully executable purchase agreement.
8. Coordinate With Outside Advisors
- Assist the buyer to source and arrange financing, if necessary.
- Bring in accounting, legal and financial planning advisors that can assist in the closing process.
9. Closing & Post Closing
- When the buyer is satisfied that the business is in fact as represented, and the contingencies have been satisfied, a closing is scheduled to sign all the required documents and transfer ownership.
- A lawyer will draft all necessary legal documents to comply with the agreement that the buyer and seller have reached. We will be available to assist you with any questions or post closing requirements you may have.