What Sells Your Business

WHAT IT TAKES TO BUY A BUSINESS

The 20-Point Buying Process

1. Commitment. Your commitment to purchase a business at price and terms consistent with what the marketplace will bear.

2. Disclosure. You sign an agreement promising to maintain confidentiality for all the information given you on the businesses we discuss. Though we are the agent of the seller, we will supply the information you need to make a good decision.

3. Background Information. You provide us with information about yourself, such as resume and financial statement. The more we know about you, the more likely we can find a business that will fit your interests, skills, financial needs and qualifications. And the more information we provide to the seller, the better terms he will consider.

4. Review. You and your broker discuss and review various types of businesses, and select some that appeal to you.

5. Showing. Your broker shows you the businesses you are interested in and discusses the important factors of each. Let your broker know how you feel about the businesses you tour.

6. Meeting. This would probably be a meeting among you, the seller and your broker. This gives you a chance to ask detailed questions you may have about the business, and to describe your qualifications to the seller.

7. Offer to Purchase. You prepare, with our assistance, an offer for the business you like
                                                a. Most offers are contingent upon your inspection of the books
                                                    and records of the business.
                                                b. The offer is not binding until you remove all contingencies.
                                                c. Earnest money is required to demonstrate your seriousness to
                                                    the seller.

8. Present Offer. We Present your offer to the seller.

9. Background. We give the seller background information about you, your experience and your point of view in arriving at your offering price, terms and conditions, together with your financial statement, favorable background information about you which will result in favorable consideration of your offer. Remember, he is likely to be your banker.

10. Explanation. We carefully explain the terms and conditions of the offer to the seller and decision makers.

11. Acceptance. The seller accepts the offer as it is written or writes a counter offer.

12. Mutual Acceptance. When buyer and seller agree to all terms and conditions of the sale, the offer becomes a Purchase and Sale Agreement.

13. Inspection. You meet with the seller at our office to examine the financial records of the business. Any questions you have are addressed.

14. Lease Assignment. We work with the landlord to get an assignment of the current lease for you.

15. Contingency Removal. You remove all contingencies in the agreement. It is now a binding agreement.

16. Open Escrow. We provide all necessary documents to the escrow attorney, who is a neutral third party, so he can prepare the closing papers for review by you and your advisors.

17. Lien Search. The escrow attorney performs a lien search on every business to identify any secured creditors.

18. Note & Lease Assumption. Arrangements are made to assign any liens or equipment leases.

19. Inventory. Arrangements are made for you and the seller to count and price inventory. (if required)

20. Closing. All parties come to the escrow attorney's office at the appointed time to sign documents.