20 Point Process
20 Point Business Buying Process
As a prospective Buyer, you should understand that, as Business brokers, we represent and are paid by the Sellers who have employed us to sell their businesses. We are obligated by law to act primarily for the Seller’s (our Client) benefit.
However, it is our policy, as well as a legal requirement, that we treat you fairly and honestly. We can provide you with valuable market information on businesses that we offer for sale and education and assistance in the business buying process. A 20 point process to purchasing a business
- Commitment: Your commitment to purchase a business at a price and terms consistent with the marketplace.
- Disclosure Agreement: You sign an agreement to maintain utmost confidentiality concerning all the information provided to you on various businesses.
- Background Information: You provide us with background and financial information since it will be required by both the Seller and Landlord.
- Review: You and the Business Broker will review and select businesses to tour.
- Showing: The Broker will tour you on the businesses you have selected and discuss the various components and benefits of owning each business.
- Meeting with the Seller: A meeting with the current owner is usually in order so that you can ask more specific and detailed questions.
- Offer to Purchase/Earnest Money Agreement: With the assistance of the Broker you will write an offer to purchase or a LOI (Letter of Intent) identifying specific contingencies and conditions for purchase; i.e. Books and records, Leases, Training agreements and Non-Compete agreements, etc.
- Present offer: The Broker will present your offer along with your RESUME, AND FINANCIAL STATEMENT to the Seller.
- Background: Your Broker will go over your background and financial statement, objectives and goals along with your reasons for your offering price.
- Explanation: The Broker will explain the terms and conditions of your offer to the Seller
- Accept/Amends offer: Seller accepts the offer as it is written or amends the offer to meet more closely his needs in the transaction (fine-tunes it).
- Acceptance: Broker will notify you of acceptance or amendment of offer.
- Mutual acceptance: Offer is signed by both Buyer and Seller accepting the conditions and terms
- Inspection: You meet with Seller and/or his accountant and go over books and records for verification of sales and income.
- Contingency removal: You remove in writing the existing contingencies in the earnest money agreement, thus making the agreement binding on both parties. EARNEST MONEY IS EARNED BY THE SELLER WHEN BUYER HAS SIGNED OFF ON ALL CONTINGENCIES.
- Consent to assign: The landlord agrees to the assignment of lease or a new lease.
- Open Escrow: The Broker may provide the escrow attorney with the documents necessary to close the transaction either in a Title company or an attorney?s office.
- Appointment: Broker will set a time for all documents to be signed in the closing attorney’s office.
- Inventory: Arrangements are made for you and the Seller to take a physical count of the inventory that are a part of the assets included in the sale price.
- Closing: All parties arrive at the escrow attorney’s office to sign all closing documents.