Buyer TutorialThe following is a very quick and very concise description to make the process go smoother. This is a overview, we highly recommend that you speak with one of our Florida Boss Group business brokers so that you will fully understand the process and the strategic importance of each stage.

Buying a business is probably going to be one of the biggest financial transactions of your lifetime.

Preparing as a Buyer

As a buyer you may be tempted to begin searching for businesses for sale without doing any preparation. You should work with a Florida business broker in order to determine how much money you would have available with different types of financing in order to purchase a business. Our business brokers can also help you create a buyer’s packet that can be given to sellers, financial institutions and landlords when appropriate in the buying process.

Identifying Businesses

Next, we can begin identifying business opportunities available that are best suited for you based on your skills, experience and interests. Together, we can search through consumer business for sale databases and professional databases, as well as seek businesses that are not presently officially available for sale. After signing confidentiality agreements and gathering preliminary information on the businesses that best meet your criteria, we can start analyzing which businesses are best to pursue.

Buyer/Seller Meeting

To better understand the businesses that we have now targeted, you will have the opportunity to meet with the sellers of those businesses. The meeting will usually begin with a tour of the business. This includes both the areas opened to the public as well as the areas that are reserved for employees only. The buyer and seller will both have the opportunity to ask questions of each other to ensure that the business and the sale is a good match. This is not the appropriate time to negotiate price and terms of the business, as this can be a very sensitive topic that should only be handled between the broker or brokers involved. To successfully transfer ownership of a business between parties, the two parties need to feel comfortable with one another. Negotiations at a buyer/seller meeting can cause ill will with one or both parties and should only be handled in the offer stage.

Purchase Offer & Negotiations

When you decide which business is right for you, we can assist you in putting forth an offer on the business in the form of a purchase contract. This process could involve a tense negotiation period. There is more to negotiating a contract than just the purchase price. You will want to make sure that you not only have a favorable asking price, but that negotiations should be focused on the terms of the sale as well. It is highly advisable that the buyer and seller do not negotiate the price and terms directly. It is recommended that experienced and skilled Florida business brokers assist both parties with negotiations.

Due Diligence

After a purchase contract has been executed, it is time for the Buyer to perform due diligence on the business. This is a critical time. This is when you have the opportunity as a buyer to analyze the business in depth, including the financials, equipment and other aspects of the business. It is important to hire an accountant/CPA and possibly other professionals to properly review the business to verify whether that the information the Seller provides is true and accurate. There normally exist standard out-clauses in the purchase agreement that allows for contingencies. This ensures that it is possible to make the contract null and void if the business does not hold up during the financial due diligence period.

Preparation for Closing & Ownership

During the contract period your Boss Group business broker will guide you through the entire process including working with landlords, franchisers, banks, attorneys, accountants and others in order to make the transfer of sale successful. Your Florida Boss Group business broker will develop a customized checklist of all activities which need to be accomplished prior to closing. This could include essentials such as creating a corporation, applying for a Florida Department of Revenue sales certificate, obtaining proper licensing, completing an inventory count and many other items you will need in order to complete the sale in order to be prepared to start running your business.

The Closing

The closing is the day the transfer of the business from the seller to the buyer takes place. A few days prior to closing you should receive the closing documents to be reviewed by you and your attorney. The day of closing will include the signature of pertinent paperwork. Disbursements of funds take place. It should be an exciting day for you as the buyer and for the seller.

Post Closing

Many times there will be certain measures that will need to be completed post closing. This may include transfer of utilities, merchant services, and vendor applications for credit. According to what was stated in the purchase contract and closing documents, accounts receivable and accounts payable may still need to be completed between the buyer and seller post closing.

 

Share:

Jim Parker

James Parker
President/Business Broker
Lic. Real Estate Broker

Dear Fellow Entrepreneur or Aspiring Business Owner:

On behalf of everyone at Boss Group International, I would like to thank you for visiting us. We have provided a wealth of information on our website so you can better understand the process of buying or selling a Florida business.

 

You may want to see what businesses are currently for sale in Florida. We have provided you a direct link to the database of businesses for sale that professional Florida business brokers use to search for their buyers. Please take a look at this incredible database.

 

If you are interested in buying or selling a Florida business, contact us today so we can discuss the possibilities. As professional Florida business brokers, our conversation will remain confidential.

 

  Orlando: 1 407 329 3273 Jacksonville: 1 904 484 0150
  Tampa: 1 813 438 7934 Canada: 1 613 777 9800
  Sarasota: 1 941 421 0464    
  Miami: 1 786 472 3872