Buying a Business
Making the decision to be “your own boss” can be one of the most rewarding things you could ever do. You can be in charge of your own destiny. You set your own goals and are, then, responsible for achieving them.
Your interests, experience and financial resources are all important ingredients in this decision making process. At Coldwell Banker Commercial NRT, we are happy to assist you selecting and evaluating businesses that may be of interest to you. We have a wide variety of businesses listed for sale and we want you to purchase the one that is right for you.
The process is actually quite simple but the need for accuracy and guidance can not be overstated:
First: Self evaluation:
Ask yourself if you are really ready to make the commitment necessary to succeed in your own business. Determine the resources (both time and money) available for this endeavor. Establish your investment criteria.
Perform extensive research. This can be accomplished in a variety of ways and choosing a business broker to help you is usually a good first step. Start your evaluations with business that appeal to you. Can you see yourself doing that kind of work for the foreseeable future?
Third: Visit the facility:
This is an opportunity to see, first hand, the working business you are about to purchase. Discuss the business operations with the Seller.
Fourth: Make an offer:
If you are comfortable with the Seller, the facility and the price, write an offer for the purchase of the assets of the business. This may include the right to use the company name, assume the lease and hire the employees.
Fifth: Reach final agreement:
You and the Seller may need to negotiate your offer before reaching an agreement.
Sixth: Due Diligence Period:
It is very common to have a due diligence period as part of any purchase and sale agreement. This allows you, or your representatives (lawyer, CPA, etc.) to review the confidential information of the business that is provided by the Seller. This is the time where you must make a “go-no go” decision.
It is customary for both the Buyer and Seller to have legal council in a transaction. The buyer will select a closing attorney who will prepare all closing documents. The closing attorney does not represent any one party - only the transaction itself.
The closing attorney's fees are split between the buyer and seller.