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Buying Your Business

What are the next steps I should take?

Buying a business is a delicate, nuanced, and personal process. If you’re uncomfortable with your current knowledge, the right advisor can best facilitate the process.

If you’re still unsure about 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, decide the type of business and niche you’d like to buy into, including what your finances allow. Once you’re brimming with confidence (which is why we created this short educational section, I’ll be more than happy to help you make the final decision and lead you through the process. Enjoy your stay!

Free information for you

Finance
SBA loan benefits
Using your 401k or IRA
Credit report
Tax and buying a business
Escrow services
Employee Stock Ownership Plan
Guide To Buying A Business
Businesses for sale

Loan Calculator

If you need finance to buy a business, use the loan calculator to work out your monthly loan payment. Interest rates vary but currently range from 7% to 11%.

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 buy a business. Still, 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 precisely 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.

In writing, you’ll need to convince the seller that you have the financial means and qualifications to be taken seriously and that you have the qualifications to evaluate the true worth of their business. You’ll need 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, complete with 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 companies 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 the right company you would like to buy, it’s best to start with your 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 immediately, allowing you to zero in on the ones that will work for you. You’ll also want to look for any licenses you need and decide whether you (and your family) are up for some lifestyle changes, such as working different hours or moving to a new geographic location.

You can start your search once you’ve squared away all these factors.

Step 2

Search for the Best Business

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

Review the Blind Executive Summary and decide if you want to learn more. If so, expect to sign an NDA or Confidentiality Agreement and provide a Personal Financial Statement to get access 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 and present an Asset Purchase Agreement or APA, which amounts to your formal offer. The APA 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 present yourself professionally, it increases your chances of closing the sale of your business.

Step 4

Close the Deal

The endgame is highly complex, rife with paperwork and potential complications. You’ll start Due Diligence and move through the process to qualify for financing if needed. You’ll conduct a complete check of the “Books and Records” and look up the license requirements or franchise agreements if they apply. You may also need to secure a lease assignment or negotiate a new lease.

Finally, you’ll work with a licensed California escrow provider to conduct a bulk sale and meet other requirements.

If all goes smoothly – congratulations! You’ll now own your 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.
Get in touch!

    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.