So you are interested in ‘Buying a Business’. Hello, on behalf of Florida Business Exchange, welcome to ‘Buying a Business’. This is one in a series of videos from Florida Business Exchange that cover the basic steps you will encounter in ‘Buying an existing Business’.
Business brokerages are highly regulated in the State of Florida and follow a strict process in working with buyers and sellers. Let’s cover the basic steps you will climb in buying a business.
The first step in the process is the initial consultation. We’ll work with you to identify your buying criteria including business types, size, owner benefit, age, location, customer and product diversification, degree of competition, working hours, travel and more.
We’ll review your skills, experience and financial viability to better understand which businesses to pursue. We’ll collect a resume and personal financial statement to provide to sellers’ agents prior to a business showing. Since the seller’s agent knows much about the business owner and the business, this information is important as they’ll want to make sure you are qualified to acquire and operate the business.
The second step is identifying businesses which meet your criteria, and then schedule a tour of these businesses with the sellers. We’ll help answer all your questions to your complete satisfaction to determine if a specific business is a good fit for you.
Once we have found a business you might be interested in purchasing, the third step is to prepare a preliminary offer to purchase the business. We’ll be glad to guide you in determining a fair price and terms for the business.
Once you have determined the price and terms you wish to present, we will assist you with the forms.
In a business sale, writing an offer is the first step in the purchasing process. Sellers will not want to provide confidential information until they have accepted your offer and earnest money, has been placed into an escrow account.
The fourth step is to complete due diligence and secure financing if required. Due diligence will allow you to review the company’s books and records to ensure the business is as represented by the prior information provided.
If desired, we are happy to provide you the names of CPAs specializing in due diligence.
If the business does not pass due diligence, or you are uncomfortable in the purchase for any reason, you may back out of the transaction with a full refund of the earnest money at any time during the due diligence period.
Financing may be an additional contingency for the sale. We work with a large number of local and national lenders willing to finance your purchase in the event seller financing is not an option.
Once the business passes due diligence to ‘your complete satisfaction’, financing is secured, and all other contingencies are removed ,the final step is to close the sale. We would be glad to suggest a closing attorney to prepare documents and register the business sale.
Once a time and date is set, everyone will meet, sign the documents, and exchange the funds and keys to the business. Typically, the seller will stay around several weeks to ease the transition of ownership.
So, let’s quickly review the key steps of buying a business:
Again, on behalf of Florida Business Exchange would like to thank you for listening. If you have any questions regarding purchasing a business, please do not hesitate to contact your Florida Business Exchange intermediary for a complimentary consultation. I wish you the best of luck in pursuing your new dreams, and having our team of professionals helping you through the process.