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get in shape now fitness guide online fitness club- join and get healthy Tips for Buying a Small Business
Before you start calling/contacting business brokers and agents make sure you know what types, sizes, and locations of businesses you are looking to buy. If you seem uncertain about this to brokers and agents they will not spend a lot of time with you. There are many more buyers than sellers on the market and brokers/agents like to work with buyers, who are serious, motivated, and know what they are looking for. Know How Much Money You Are Willing To Put Down When buying a business you need to know how much money you are willing to spend on a down payment for a business. Most of the time you will be putting down 30-100% down to buy a California business. Depending on the amount of money your willing to put down determines the size of business you are able to purchase. Know Where The Down Payment Money Will Come From Money for a down payment can come from many different sources. The first is cash on hand in savings. Second is pulling equity out of your home. Third is from your retirement funds. Knowing where and what you are willing to do upfront will save you a lot of time in the search process. Get Pre Qualified For Financing - Leverage That Purchase Getting Pre-Qualified for financing by lenders if very important since many businesses want all cash for their business. With financing you only have to put down 20%-30% and you can get financing for the rest of the purchase. You will need to submit basic financial info to these lenders and in most cases depending on the size and type of businesses you are looking to purchase they can tell you if you would be able to get a loan from their company. For a list of lenders that do business acquisition and SBA financing to purchase businesses throughout the state of California go to: www.bizben.com/resources/financing.php Keep The Negotiating & Communications Moving Forward! Remember - TIME KILLS DEALS. Make sure when you are negotiating the contract, allocation of purchase price, new or restructured lease, etc. always be moving forward. Don't let any situation sit too long - it will most likely kill the deal! Confidentiality Agreements Are Important To view or get any detailed information on any businesses for sale you will probably need to sign a confidentiality agreement. Respect this part of the process and keep the sale of all businesses confidential. There are also legal ramifications if it is traced back to you that you were the one who leaked the word that the business was for sale! Have Your Professionals Lined Up Before You Sign A Contract You will be utilizing many professionals to buy a business. Make sure you have a CPA or Due Diligence Consultant to help you look at the financials and paperwork of the business to make sure it is in order. You will also possible need financing (a loan for the purchase), escrow services, an attorney to review contracts and possible other services to assist you in the buying of your business. For details go to: www.bizben.com/resources Make An Offer If You Like A Business Too many buyers are timid when buying a business and not willing to "pull" the trigger and sign a purchase agreement to start the process of buying a business. Remember sign a purchase agreement there will be a Due Diligence period with contingencies that will have to be met before the deal is closed. If those contingencies are not met or the books and records are not exactly as represented you are in most instances able to pull out of the deal - make sure you have all contracts/agreements reviewed by an attorney before signing. Get The Signed Purchase Agreement Into Escrow Get the signed purchase agreement into escrow immediately (there is a list of excellent Escrow Companies throughout California at www.bizben.com/resources) and sign off any contingencies as they are removed- remember TIME KILLS DEALS. Make sure you go through the Allocation of Purchase Price in the beginning of the escrow process not at the end which happens most of the time. By getting into the escrow process usually takes the deal out of play and out of reach for other potential buyers. Keep The Escrow Moving Forward At All Times! On good businesses for sale there will probably be multiple offers to buy the business - even when it goes into escrow there will be potential buyers who will want to "get in line in case things bog down". You want to make sure you move the process along so that you aren't perceived as getting second thoughts about buying the business! Open communications, setting expectations and keeping things on schedule gets deals to close smoothly. California Business Brokers http://www.californiabusinessbrokers.com California Business Opportunity Network
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