What happens when I find a business I want to buy?
When you find a business, the intermediary or business broker will be able to answer many of your questions immediately or will research them for you. Once you get your preliminary questions answered, the typical next step is for an intermediary or business broker to assist you in the preparation of an offer based on the price and terms you feel are appropriate. This offer will generally be supported by the actual books and records that have been supplied to you thus far. The main purpose of the offer is to see if the seller is willing to accept the price and terms you offered.
There isn’t much point in continuing if you and the seller can’t get together on price and terms. The offer is then presented to the seller who can approve it, reject it, or counter it with his or her own offer. You, obviously, have the decision of accepting the counter proposal from the seller or rejecting it and moving on to other businesses.
If you and the seller agree on the price and terms, the next step is for you to do your “due diligence.” The burden is on you – the buyer – no one else. You may choose to bring in other outside advisors or to do it on your own – the choice is yours. Once you have checked and approved those areas of concern, and if necessary made an adjustment to the price and terms, the final closing documents can be prepared. Once the documents are signed you will be on your way to fulfilling your dream of owning a business. You will now join many others who, like you, have chosen to build their personal career through business acquisitions!
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The Calder Associates eam