Buy A Business - The Process

On average, privately owned businesses in the U.S. change hands every four and a half years! Sellers sell for a variety of reasons: retirement, death of the owner, family demands, divorce, “burn-out,” partnership dispute, a new opportunity arising, etc. From the standpoint of the potential business buyer, these are opportunities for the Buyer to escape from the grim statistics associated with starting a business from scratch (more than 85% of business start-ups fail during the first five years; conversely, businesses that have succeeded for five years almost always continue to operate five years later). RE/MAX 200 REALTY BUSINESS BROKERAGE DIVISION exists to help you find and acquire the “right business for you,” one that you can be passionate about and that will provide you with the continuing lifestyle you want for you and yours.

Getting from here (you want to own and operate a business) to there (you own it and are operating it) involves a series of steps that must be taken in a measured way, without shortcuts, and with the seriousness such an undertaking deserves in order to result in your obtaining the right business and under the right price and terms. We will work with you every step of the way to identify, evaluate, and negotiate the purchase of the “right one” for your needs and interests.

If you are seeking a business in the $50,000 - $5,000,000 range, based in Central Florida, with or without the land and building associated with the business, you have truly come to the right place. Just as real estate agents who specialize in housing can assist you in purchasing a home no matter what company listed it (through multiple listing sources), we have access to all of the business multiple listing sources, and since we will come to know your interests, criteria, financial objectives, etc., we will work to help you acquire the business whether it is a RE/MAX listing or one you see offered elsewhere. Again, as with residential real estate, there are no costs to you associated with our services… none.

Here is a summary of the process we employ:

• Guidance: in helping you identify the right kind of business to meet your interests, lifestyle, and financial objectives..
• Confidentiality:  with respect to your financial information and even your identity if you wish.
• The Negotiation: with respect to offers and counteroffers between you and the Seller.
• Financing: helping you identify sources of, and obtaining, financing.
• Integrating: Our role also involves networking with your and the Seller’s accountants, and attorneys where their involvement is desired.
• Transition: assisting in the transition of the business from the Seller to you at and subsequent to Closing.

The steps in the process are these:

• Meet: We meet for the purpose of establishing the profile of what your objectives are in terms of types of businesses that interest you, your background and interests, your financial objectives for the business (what kind of net cash flow we are seeking), your investment capability (how much out of pocket cash are you comfortable investing along with whatever seller or third-party financing we will seek), what are your geographic, timing of purchase, and other criteria.
• Research: Based on what you tell us in our getting-to-know-you meeting, we will research available businesses to identify those that might best meet your criteria and review them with you.  Similarly, if you come upon a business listing you would like further information about, we will get it and review it with you.
• Confidentiality: While we maintain the confidentiality associated with the fact that you are looking for a business to acquire and your financial information, it is equally important to protect the confidentiality of the Seller (his employees, competitors, customers, etc. generally do not know he is selling the business). You must sign a Non-Disclosure agreement for each business you wish to pursue.
• On-Site Visit: After we review the basic listing information about a business we will arrange an on-site meeting at the business so you can see the facility and ask questions directly of the owner.
• Offers and Counter-Offers:  When you have concluded that a particular business meets your criteria, we will prepare the offer with you and present it for consideration by the Seller. This offer includes the price, terms, training/transition period you desire, non-compete clause, contingencies, closing date, and other specifics. Often, even though an offer may not be accepted as made, Seller will make a counter-offer.  We handle these negotiations between you and the Seller and in doing so act as Transaction Brokers, so that we may work with both parties to help arrive at terms and conditions acceptable to both.
• Your Protection: The standard Asset Purchase Contract we use for making offers contains many contingencies (and others may be added as the Buyer wishes) for your protection.  These come into play after acceptance, and before Closing, during the due diligence period. Key contingencies include: Seller must verify financial claims since you relied upon them in making his offer; where a lease is involved, you must be able to obtain a transfer of the lease by the landlord, or a new lease under substantially the same terms and conditions as the existing one; you must be able to obtain the third-party financing you specify in the offer. If any contingencies are not met, the Buyer has the right to terminate the agreement and have his escrow deposit returned.
• Due Diligence: Once agreement has been reached as to price and terms, and a closing date has been agreed to, the due diligence period begins. This, not prior to the signing of the agreement, is when you have the right to review, and/or have your accountant review, any and all books and records of the business to verify the financial performance claimed. You have the right to any and all information you wish to validate. Following acceptance of the offer, you can also have your attorney review the Contract if you wish, but his review is concerned with contract wording, contingencies and the like, rather than the agreed upon price and terms of the Contract.
• Co-ordination: During due diligence, our role includes obtaining information and documents form the Seller that you wish to review, and co-coordinating with other professionals you may involve in the transaction such as your accountant or attorney, other listing broker if one is involved, and the Closing Agent.
• Financing: We will assist you in helping to identify and work with funding sources if third-party financing is involved in the transaction
• Closing: Work with you, Seller, other broker if one is involved, and Closing Agent to assure smooth conclusion to the transaction at the closing table.  And, of course, we will be sitting with you at that closing table.
• Transition: Help, where applicable, with the transition process from the Seller to you.

Our commitment to you is that we will be with you every step of the way.


CALL LEE FINBERG and/or RICHARD ULCH AT THE BUSINESS BROKERAGE DIVISION OF RE/MAX 200 REALTY: 407-629-6330 or CLICK HERE TO E-MAIL US TO ARRANGE A CONFIDENTIAL, NO-OBLIGATION REVIEW OF YOUR NEEDS AND OBJECTIVES

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