Buying a Business
The process of buying a business can be a complex often confusing process for even an experienced buyer much less the first time buyer. Buyers generally need answers to the following questions:
- What kind of business should I purchase?
- How do I evaluate the price the seller is asking for the business.?
- Why is necessary for me to have money for a down payment and be able to substantiate the down payment amount?
- What kinds of financing options are available to help me purchase a business?
- If this is such a good business, why can’t I get financing for it?
- What kind of financial records should I expect to receive from the seller?
- What kind of training is available from the seller?
- What kind of information can I expect the seller to disclose to me before I have made an offer and what can I not expect to see.
- How do I ensure that I am getting all the necessary information from the seller concerning lawsuits or other potential problems before I decide to buy the business?
- Who takes care of negotiating a new lease with the landlord if the seller does not own the business?
- What are the advantages of using an escrow company in order to complete the purchase transaction?
- How can the purchase of real estate along with the business be advantageous in terms of financing?
- I do I make a legal offer to purchase a business?
- How do I verify the financial representations a seller makes to me before I actually purchase the business?
- What happens if the seller’s representations are untrue? Can I cancel the transaction?
- How do I protect myself from the seller when I am purchasing a business?
- What happens during the escrow process?
- What forms will I need to file with governmental agencies in order to complete the transactions?
- How do I protect myself from the creditors of the business that have not been disclosed to me before I take possession of the business?
- Is it better for me to purchase the assets of the business or should I purchase the Stock of the company?
- Why do I need to fill out a confidentiality agreement before getting detailed information about the business?
Given the obvious complexity of the process and the fact that our services are provided free to buyers, there is really no reason not to work with a Sunbelt Business Brokers of Pasadena trained business intermediary. A business broker takes the time to understand what your personal and financial needs and goals are, and then finds a business opportunity that met your criterion. The broker will provide you a profile of the business, setup an initial meeting with the seller, obtain information for you, and, in the event you decide to purchase the business, structure and draft an offer that protects you and is financially viable given your budget. If the offer is accepted, the broker assists you to get the financial information you require in order to verify the financial representations of the Seller (a process called “due diligence”). The broker is familiar with the required steps to close the transaction including liens searches, property tax searches and filing of UCC’s. In view of the benefits for a buyer, it does not make sense not to use a business broker!
There is another reason why it is advantageous for a buyer to work with Sunbelt Business Broker’s of Pasadena. The company is part of the Sunbelt Business Brokers Network of over 346 offices in the United States and eleven international offices. Sunbelt has been rated the top business brokerage firm since 1995. The January 2003 edition of Entrepreneur Magazine ranks us the preeminent business brokerage firm once again. The size of the network gives our brokers access to businesses all over the United States and in many foreign countries. Buyers working with Sunbelt Business Brokers of Pasadena have exposure to one of the largest selection of business opportunities available and the necessary guidance to ensure a successful purchase transaction.