Buy a Business
Buying a business, regardless of its size, is a complex matter. Each purchase is unique, having its own set of variables and sometimes obstacles that need to be understood in order to be handled effectively. For that reason, partnering with an experienced, reliable, and dedicated California Business Broker is crucial to a successful transaction period. If you’re looking to purchase a business in an area known for its remarkable quality of life and favorable business environment, then you’ve come to the right place. We encourage you to take a minute and register as a buyer so our listings are available for you to view.
The Sale of Every Business is Highly Confidential. We are Obligated to have these Forms in our Possession Before we can Release ANY Information to you.
Here are 8 Steps of BUYING A BUSINESS
STEP 1: TAKE CHARGE
You have made the decision to control your financial future by purchasing a business. Owning a business is the greatest way to build wealth and take charge of your own destiny. Congratulations for contacting Irvine Business Brokerage, you’ve selected the best in the industry! Now the process begins to help find and acquire the right business for you.
STEP 2: EVALUATION
All buyers should meet their Irvine Business Brokerage representative in person, however, if that is not possible due to distance, continuous communication by phone or email can be effective. We begin our process 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 Irvine Business Brokerage’s considerable market basket of resources.
STEP 3: EDUCATION
You won’t feel comfortable making a decision until you understand what it takes to buy a business. 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.
STEP 4: SEARCH
Now the hard work begins. We will help you search for your business, aid you in signing confidentiality disclosures, get you detailed information on the business, and set up showings with the seller. We 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.
STEP 5: OFFER
We will share with you our expertise in deal structure, by helping you draft a contingent offer on a business 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.
STEP 6: DUE DILIGENCE
This period is where you fully inspect the owner’s representations are accurate. We 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.
STEP 7: CLOSING
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 escrow with the signing of several documents and the payment of the balance of the purchase price.
STEP 8: POST CLOSING
Transitional training by the seller may include meetings with employees and clients, technical education, computer updating, and other essential knowledge transfer. We 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, Irvine Business Brokerage 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 Irvine Business Brokerage ‘s assistance, you can have a successful experience purchasing and owning your own business.
Purchase and Sale Agreement
Irvine Business Brokerage provides a standard Purchase and Sale Agreement that covers the necessary elements of a business sale. The basic agreement provides important contingencies to protect both Buyer and Seller as follows:
Books and Records Review: The Agreement specifically calls for a complete review (due diligence) of all company records by Buyer and/or Buyer’s agent, CPA or accountant. The Buyer must approve, in writing, the records of the company before proceeding toward a closing.
Lease: The Agreement specifies that the leasehold rights will be assigned, or a new lease developed, in the exact manner as requested by the buyer.
Equipment and Fixtures: The Agreement specifies that all equipment and fixtures will be in working order and free of liens at the time of closing.
Inventory: The Agreement specifies that all inventory included in the sale is marketable and consists of the necessary quantity and quality to conduct the business in the usual manner.
Training and Counsel: The Agreement provides for training and consultation, at no charge, by the seller for the buyer’s benefit.
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