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What are the next steps I should take?

Buying a business is a very delicate and complicated process which is best facilitated by the right person if you’re not comfortable with your current knowledge.

If you’re still unsure on what type of business you’d like to own or how best to invest your money you should first read through our documents on the right – feel free to grab all of them as they are free resources designed for your needs and education. Once you’ve gotten the basics, figured out what type of business and niche you’d like to buy into and once you’re brimming with confidence (which this little educational section was specifically created for) I’ll be more than happy to help you make the final decision and lead you through the whole process. Enjoy your stay!

Buying a business is an incredibly complicated process. Working with us makes it simple.

How do you buy a business?

We’ve created a lengthy article explaining the intricate steps to buying a business, but if you choose to work with us, the list of necessary steps becomes much briefer: call us, sign a non-disclosure agreement (NDA), and tell us exactly what you’re looking for in a potential business investment. We take care of the rest. Going solo, you’ll need to learn how to navigate landlords, property management companies, lenders, accountants, attorneys, franchisors, business brokers, escrow companies, and other engaged parties.

You’ll need to convince the seller that you have the financial means to be taken seriously and the qualifications to evaluate the true worth of their business. You’ll need to be able to identify potential shortcomings in their current business model and avoid the ‘money pits’ that will never give you a return on your investment.

It’s a challenging process full of headaches, and we can make it infinitely easier.

Steps to buy a business

The average buyer spends 18 months looking for the right business purchase – and many end up with businesses they can’t make profitable. To save you that heartache, here are all the steps to buying a business, along with pitfalls to look out for along the way.

Step 1

Assess Your Qualifications

Most buyers start out looking for a business, which is a mistake. The number of businesses for sale is near-infinite, while the number of businesses that will suit you, your personality, and your set of skills is limited. To find a good business match quickly, it’s best to start with your own strengths and weaknesses and determine what type of business would suit you best.

You’ll also want to determine your down payment and borrowing ability. These two factors will eliminate most businesses right away, allowing you to zero in on the ones that will work for you. You’ll also want to look for any licenses you’ll need, and decide on whether you (and your family) are up for some lifestyle changes, such as working different hours or moving to a new geographic location.

Once you’ve squared away all these factors, you can start your search.

Step 2

Search for the Best Business

Start by identifying your business interest – such as retail or manufacturing or food. Narrow your search from there by applying the parameters above: your financial means, your personal skills, your preferences, and your lifestyle needs. Once you have a few qualified candidates, dig a little deeper.

Review the Blind Business Summary and decide if you’d like to learn more. If so, you’ll be asked to sign an NDA or Confidentiality Agreement to review the Confidential Business Information. If you like what you see, you can ask to meet the seller and tour the business to see the day-to-day operations.

Step 3

Make a Deal

When you meet the seller, do a gut check and analyze your interest level as they show you around the business. Could you see yourself working here? Do you think you’d enjoy it? Do you have ideas for how to improve the business? If so, you may decide to make an Offer to Purchase.

If the seller is amenable, you’ll create an “Asset Purchase Agreement,” which amounts to your formal offer. This is where you’ll negotiate as necessary to get the best possible purchase price for the business. Be careful; if you push too hard, the seller may decide he can get a better price elsewhere and walk away. If you play your cards well, though, you’ll be ready to close the deal.

Step 4

Close the Deal

The endgame is extremely complex and rife with paperwork and potential complications. You’ll start Due Diligence and qualify for your financing if you need it. You’ll conduct a complete check of the “Books and Records” and look up the license requirements for franchises like liquor. You’ll need to secure a lease assignment or negotiate a new lease.

Finally, you’ll work with the Title Company to conduct a Bulk Sale and go into Escrow.

If all goes smoothly – congratulations! You’ll own a business.

Finding the right businesses for yourself is much more complicated than it tends to look, in no small part because it often indicates the turning of a new page and a new era in your life.

Before you buy, you need to be sure that action will support your next move – and a professional business adviser, such as myself, can help make sure you’ve made the right decision.

    YOUR SACRAMENTO CALIFORNIA BUSINESS INTERMEDIARY

    ADDRESS

    5150 Fair Oaks Blvd, #101-198
    Carmichael, CA, 95608-5788

    PHONE

    Phone: (916) 570-2674
    Fax: (916) 473-8655

    EMAIL

    info@rogersonbusinessservices.com

    Buying or selling a business is a complex process – and you shouldn’t go through it alone. You need an experienced business broker to guide you through the process.

    We make buying and selling businesses simple and straightforward. We’re qualified to handle the most complicated aspects on behalf of our clients, ensuring you walk away satisfied.

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