15 May Buying A Business
Want to buy a business? Buying a turn-key business is a good choice for anyone with the finances and business know-how. Working with Strategic Business Brokers Group when buying a business in Phoenix affords you the same phenomenal service as a business seller. Strategic Business Brokers Group has access to thousands of businesses for sale listings through their global network. Many listings are not advertised publicly for confidentiality and industry purposes, so hiring a business broker such as Strategic Business Brokers Group gives you the maximum number of qualified candidates for purchase in your area. Uncover the maximum number of opportunities possible, resting assured that you find the best suitable business to fit your needs.
Helping you find the right business is just the first step in a business acquisition. The broker is there to help you find the right fit not only for your finances, but also your personality, lifestyle and future plans. Strategic Business Brokers Group will guide and assist you throughout the entire process of buying a business, up to and including the closing. Their brokers have walked in your shoes and know the market inside and out. The following is some helpful information to get you started in your buying process. There is work to be done, but the more knowledgeable and prepared you are, the smoother the process will go.
By deciding to buy and go into business for yourself, you have made the decision to control your financial future and take charge of your own goals and freedoms. Owning a business is the best way to build wealth and take control of your own future. Now the process begins to help find and acquire the right businesses for sale in Phoenix Arizona for you.
Importance of Information and Due Diligence
Understand that in looking at buying businesses, you will need to dig up quite a bit of information. Information is key. Small business owners are not always known for their record-keeping skills. You will want to make sure you don’t overlook a treasure of a business just because you don’t take the time to find the information you need for an informed decision. Try to get a good understanding of the earning power of the business. Once a business has caught your interest, learn as much as you can about that particular industry and business. The responsibility of investigating the business rests on you, the buyer. Your broker will be a great help, but do not depend on someone else to do all the work for you when buying a business. You are the one who will be working in the business, therefore ultimately taking the responsibility for the decision to buy it. Once you and the seller have reached a tentative agreement on both price and terms, do your due diligence and leg work of satisfying any questions you may have about the details of the business: financials, profits, employees, taxes, legal documents, etc. No one else is going out on a limb to tell you that you should buy a particular business. You certainly want your own answers when making the biggest career decision you might ever make. The more information you have, the better off you will be.
Buyers should meet their broker in person and keep continuous open communication by phone or email as your process begins. The broker will start by gathering detailed information about establishing your financial situation, skills, expertise and experiences, as well as your personal goals. This information helps them to gain your commitment to the process and determine which businesses are best to pursue. They should give you a thorough evaluation to understand your needs and desires, just as you should them.
Until you fully understand what all is involved in buying a business, you likely will not feel comfortable making a decision to purchase. The business broker at Strategic Business Brokers Group will walk you through the process and explain everything to help you understand the realities of the current market and what is available. They will teach you how to use online forms, you will scour the Internet for businesses, read Business Listing Information sheets, understand basic valuation concepts, and will review all available opportunities. Educate yourself as much as possible to fully understand what you are getting into. Understand the market and the closing process as much as you research the business you are potentially purchasing.
You just thought information gathering and education were hard work. The real hard work begins when you begin the actual listings search. Your broker will help you search for the perfect business, assist you in signing confidentiality disclosures, set up showings and get you detailed information on the business. This will be the dizzying part of your new business procurement. The Strategic Business Brokers Group broker will refine your search and filter opportunities until you decide on the right company. If the search takes longer than usual, you might need to return to the previous step and re-educate.
Negotiating the Deal
If your credit is good, it would be wise to supply a copy of your credit report with the offer to the seller. It is possible that the seller may be impressed enough with your credit to accept a lower-than-desired down payment or offer. You can’t expect the seller to cut both the down payment and the full price, so decide which is most important for you. If you try to buy the business with as little cash out of pocket up front as possible, lower the down payment, but do not try to lower the full price substantially. On the flip side, if cash is not a problem, you can try to convince the seller to reduce the full price a great deal. Ensure you can afford the debt structure. Don’t get in over your head and obligate yourself to make payments to the seller or the bank that will keep you from building the business and still provide a comfortable living for you and your family. You must have a roof over your head and you must eat. You sure don’t want to have to turn around and re-hire your broker before you really want to sell.
Throughout the purchasing process, you should maintain a good relationship with the seller. They will be teaching you the business and acting as a consultant, at least temporarily. It’s alright to negotiate on areas that are important to you, but don’t push the seller against the wall trying to negotiate over a detail that is minute. Many sales fall apart over stubborn sellers or buyers who don’t want to budge over some minor detail and refuses to bend.
At closing, final preparations will be made for financing, inventory counts, lease assignments, utility transfers, merchant service accounts and any other last minute, lingering situation to ease the seller and buyer through closing as seamlessly as possible. Your acquisition normally is completed by an attorney with the brokers, sellers, buyers and Title Company present, and involves the signing of numerous documents and the final payments of the balance of the purchase price.
After closing, transitional training may be included by the seller to comprise of meetings with employees and clients, software updating, technical education and other essential transfers. Your broker can assist you with any questions or post-closing requirements you may need.
Many questions may arise during the selling or buying processes of your business. You will discover that Strategic Business Brokers Group can provide a successful experience selling or purchasing your business. Their skilled business brokers use the same care in helping match you with the appropriate individuals and businesses to sell or purchase a business as they would if selling or buying for themselves. They have walked miles in your shoes as successful business owners or managers before joining the Strategic Business Brokers Group firm in Phoenix, Arizona. They assure smooth and successful transactions and transitions, staying by your side every step of the way.