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BUYER PROCEDURES
Buyer Procedures | How to Buy a Busines
By choosing to buy a business, you've taken a significant step toward controlling your financial future. This decision is one of the best ways to grow your wealth and shape your destiny. I'm here to guide you through every stage of the process, from finding the right business to successfully closing the deal.
8 Steps to Buying a Business
Enroll in Our Registered Buyer Program
Most sellers require proof of your capability to purchase their business before sharing more details. I recommend preparing a comprehensive resume and a net worth financial statement upfront. If you're considering financing options like a Small Business Administration (SBA) loan or seller financing, you may need to provide additional documents such as credit reports or tax returns to satisfy SBA financing requirements or meet leasing or licensing prerequisites.
Provide a Resume and Financial Statement
Most sellers require proof of your capability to purchase their business before sharing more details. I recommend preparing a comprehensive resume and a net worth financial statement upfront. If you're considering financing options like a Small Business Administration (SBA) loan or seller financing, you may need to provide additional documents such as credit reports or tax returns to satisfy SBA financing requirements or meet leasing or licensing prerequisites.
Sign a Confidential Disclosure Agreement (CDA)
Before we can share specific details about a business opportunity, you'll need to sign a Confidential Disclosure Agreement (CDA). This ensures that the information about the business remains protected. It's crucial to keep this information confidential and discuss it only with your most trusted advisors. If you conduct a ‘drive-by' of a potential business, act as a regular customer and don't disclose your interest in the business to anyone.
Investigate the Opportunity
Once we've identified a business of interest, we'll arrange an initial phone conversation or meeting with the seller. This is your chance to ask questions and gather the necessary information to evaluate the business. Prepare a list of questions to ensure you have all the details you need to make an informed decision.
Prepare an Asset Purchase Agreement
When you decide to proceed with a purchase, I will help you prepare an offer in the form of an Asset Purchase and Sale Agreement. It's advisable to consult with attorneys and accountants who specialize in small business transactions. I can recommend experienced professionals who can provide valuable guidance throughout this process.
Conduct Due Diligence
Once the Asset Purchase Agreement is in place, you'll enter the due diligence phase. This is your opportunity to verify the business's financials and ensure all information provided by the seller is accurate. It's a critical step to confirm the business's viability and to gather all necessary details before finalizing the transaction.
Secure Financing with an SBA Loan
If the business qualifies for an SBA loan, I can connect you with a network of reputable vendors who can assist you with your loan application. This step is crucial for ensuring you have the financial resources needed to purchase and operate the business.
Finalize the Purchase and Close the Deal
Throughout the process, I will be by your side, providing support and guidance to ensure a smooth transaction. From negotiating the terms to finalizing the paperwork, I'll help you every step of the way until the deal is successfully closed.