People who desire to acquire an set up business must be well prepared prior to the search process begins. Well managed, profitable and successful businesses are in short supply and very popular. Business owners and business brokers equally have little patience and interest in wasting their valuable time with customers who have not used the right steps to show that they are completely prepared to acquire a business. Atlantic
How exactly does a buyer define themselves as being a “serious” prospect rather than a casual, curious, wheel kicker? The goal of this article is to outline the steps that a business buyer should take in advance so that they can be noticeable and be recognized as a serious and credible buyer?
Let’s get started with a few examples demonstrating who is NOT a serious candidate.
I want to buy a tiny business in the area but are not sure what type yet. Could you send me personally information on three of the businesses you have listed for sale – the professional manufacturing business, the durable medical equipment company, and the online retailer?
I am still working at my current job but am considering leaving the firm and buy a business within the next couple of years.
My background is totally in the printing images industry but I want to make a change and thought about buying a wholesale chemical products company.
Excellent little money saved up but need to get a loan to get a small business. I are not sure how much I would qualify for or how large a business I could find the money for.
I want to buy a business but actually will need the owner to finance the purchase. I will pay them back totally out of your future cash flow of the corporation.
Preparing a business for sale takes considerable work on behalf of the business broker and retailer. Just a few of the steps include valuing the business, preparing the Confidential Business Review (executive summary), and organizing all of the corporate, financial, and tax documents. Intended for a buyer to be recognized as a serious candidate, they as well have work that needs to be accomplished preceding to being capable to endeavor in the marketplace and commence assessing business opportunities.
So, why is a buyer a serious candidate?
Personal profile and job application
Build a detailed personal account and biography. Not only does the seller need to see this file but any bank requires this as well. A resume is merely a starting place. The document should cover the following questions:
What is your education and job history?
Who have will be buying the business? Just you, you and your spouse, a partner, a real estate investor?
Why you are considering buying a company?
What is your investment criteria?
What transferrable skills do you own that qualify you for taking care of the business?
How will you be financing the acquisition? If bank buying into will be used, a prequalification letter should be included. How much money are you experiencing for a down repayment?
What is the timetable to complete the acquisition?
Who is your advisory team? Which in turn legal professional will be composing the Asset Purchase Contract and facilitating the shutting? Do they have experience of business acquisitions?