HOW THE BUSINESS BUYING PROCESS WORKS
We have a confidential conversation
Either in person or over the phone, we discuss what businesses might be right for you and your expectations. Once we have a better understanding of what you might be looking for, we can leverage our contacts to find opportunities worth considering. Sometimes we bring businesses forward that have not yet hit the market. In all cases, its best that you complete a buyer profile to begin the process. If you see any businesses for sale you would like to learn more about, we can begin the process to learn more
Finding the right business to buy
Finding the right business to buy. Once we have reviewed one or more businesses together, we narrow your selection and advise to ensure you are making a good decision. The business must be right for you. This includes getting non-disclosure agreements between all parties and reviewing preliminary financial information and other details about the business. Our process will help uncover reasons for the sale and how much potential the business has once you own it.
Make an Offer and Final Price Negotiation
Make an Offer and Final Price Negotiation. We help you understanding comps and hold your hand for every step on the process to draft an offer.
Closing Day. As you can imagine there are hundreds of details that need attention before a sale is closed. Our job is to make sure we account for every one of them so that you get the business you expect without any surprises. Our team of lenders, accountants, and attorneys have handled transactions like these many times. You’ll be in good hands.
Julie Brigman, Senior Advisor
We are the world leader in the marketing and sales of businesses, franchises and commercial real estate. Whether you represent an acquisition-minded corporation, or are personally interested in owning your own company, Julie Brigman offers the professional services that successfully bring buyers and sellers together.
Buying or selling a business can be a complicated venture. While some businesses are sold without the help of accountants and attorneys, we strongly recommend that both the buyer and seller engage professionals.
While the e-2 process is quite complex and we certainly recommend a consultant that specializes in obtaining visas, several of Transworld’s agents have done numerous E-2 transactions and can provide enough help to move you along the process.
Our website, www.tworld.com or go to the link on my listings page. I have a a search page where you can look at over 4000 businesses. You can call and give me a quick overview of what you are looking for. The more you know about what YOU want out of a business, the faster the process goes. Decide what your interests are and what you can do with it. There are so many varied businesses, you need to have a basic idea of what you want
Transworld is generally paid by the seller not the buyer. However, other costs do come into play. Legal and accounting fees are generally required and additional startup costs may also come into play.
Depending on the complexities of the business, the former owner will offer varying levels of training. On most small businesses, the owner will offer training for two to four weeks at no cost to the new owner. Sometimes an Employment contract is implemented or a Consulting agreement is used.
As part of the acquisition process, you will have to go through “due diligence.” During this period the seller is required to present documents to verify his profit numbers. You may ask any questions you have during this time. You may also decide during this time the business is not for you and you, and you can walk away with no obligations.
No, while 100% of the purchase price is sometimes required, sellers will frequently provide owner financing to some extent. Additionally, a bank may be able to loan up to 80% of the purchase price through a loan sponsored by the Small Business Administration. This is a 7-A Loan when buying just a leased business. There is also a 504 loan with great terms for a business that has commercial real estate. Right now, during the Covid Pandemic, SBA is offering some very nice terms and deals.
Businesses vary in price a great deal, however, it would be unlikely that one could buy a business with much less of a down payment than $50,000.
The Buying Process:
Eight Steps To Entrepreneurship
You have made the decision to control your financial future by purchasing a company. Owning a business is the greatest way to build wealth and take charge of your own destiny. Congratulations for contacting Transworld. You’ve selected the best in the industry! Now the process begins to help find and acquire the right business for you.
All buyers should meet their Transworld representative in person, however, if that is not possible due to distance, continuous communication by phone or email can be effective. We begin searching for the right business by gathering detailed information about you to establish your financial capabilities, your skills and experiences, and your personal life goals. This information helps us gain your commitment to the process and determine the best types of business to pursue. Once this is completed, we will start your search using Transworld’s considerable market basket of resources.
You won’t feel comfortable making a decision until you understand what it takes to buy a company. We will explain the process and help you understand the realities of the current marketplace. You will learn how to use online forms, to search the Internet for businesses, to read Business Listing Information sheets, to understand basic valuation concepts, and to review our available opportunities.
Now the hard work finding the perfect business begins. We will help you search for your company, aid you in signing confidentiality disclosures, get you detailed information on the business, and set up showings with the seller. You will refine your business search and visit opportunities until you decide on a business to purchase. If your search takes longer than a few months, you may need to return to the education step.
Make An Offer On The Right Business
We will share with you our expertise in deal structure, by helping you draft a contingent offer on a company that you would like to buy. A purchase and sale agreement will be presented to the seller with a deposit of good faith held in escrow to demonstrate your seriousness. After any negotiations, you should be left with an executed contingent purchase agreement to buy a business.
This period is where you fully ensure the owner’s representations are accurate. Our staff will coordinate the efforts of your legal and accounting professionals and strive to satisfy all contingencies. If there is financing involved, your application must be approved by the lender, proving that you are qualified for repayment of the loan.
Final preparations will be made for lease assignments, utility transfers, financing, merchant service accounts, inventory counts and any other last minute preparations to make the transfer as seamless as possible. Your acquisition will usually be completed by an attorney with the signing of several documents and the payment of the balance of the purchase price.
Transitional training by the seller may include meetings with employees and clients, technical education, computer updating, and other essential knowledge transfer. Transworld Business Advisors will be available to assist you with any questions or post closing requirements you may have. Remember what you have learned throughout this process, because when the time comes, Transworld will still be here to help you sell your business.
Many additional questions may arise during the buying process. Please do not hesitate to have us explain in detail any portion of this process. You will discover that, with Transworld’s assistance, you can have a successful experience purchasing and owning your own business.