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BUYERS |
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WHY OWN A BUSINESS?
Owning your own business can be a very emotionally
and financially rewarding experience. A business owner,
to a great extent, controls his own destiny because his
success depends on his own hard work and intelligence. Unless
you become a senior executive in a billion-dollar company,
your income potential as a business owner will far exceed
what you can ever possibly earn as a salaried employee.
WHY BUY AN OPERATING BUSINESS?
Business ownership, of course, has risks. You
may be aware of the high failure rate among small businesses,
most of which occur within the first two years of operation.
The two primary reasons for small business failure given by
the SBA (Small Business Administration) are: lack of capital
and poor management. Most of the businesses listed by Business
Team have stood the test of time. When you buy an operating
business, you will know how much capital is required, and
that the existing management style has been successful.
FINDING THE RIGHT BUSINESS
When you find a business that you are interested
in, please call us and we would be happy to provide you
with general information regarding that business. We are
usually required by the business owners to preserve the
confidentiality of the proposed sale so we cannot at this
point give you the location, identity or detailed financial
information about the business. To obtain additional information
about a business, you are required to sign a Confidentiality
Agreement and for some businesses provide a Financial Statement.
After you learn more about the business you are calling
about, it may not be of further interest perhaps because
of price, location, etc. If you are motivated to find a
good business, we suggest a meeting to help establish a
well-defined set of criteria for the business you are looking
to invest in.
Also, if you are unfamiliar with the process of buying a
business, we will be happy at this time to outline the process
and give you some general guidelines about how to determine
business value. Often the best businesses are sold before
appearing in our web site, that's why it is important to
establish a relationship so that we may notify you immediately
when the business that matches your criteria comes on the
market. Business Team maintains a complete file on each
business with tax returns, leases, equipment, etc., which
you may review to determine your level of interest once
you have signed an agreement not to disclose confidential
information.
MAKING AN
OFFER ON A BUSINESS
Once you decide to buy a business, we will
help you write an offer which will be presented to the seller.
A good faith deposit check is required when an offer is
made to the owner. The offer contains several safeguards
which allow you to void the agreement if certain contingencies
are not met. For example, you will have the right to cancel
the contract if the seller is unable to verify income figures.
Some other common contingencies in addition to verification
of business performance, are: obtaining a satisfactory lease,
franchisor approval, SBA loan approval, issuance of licenses
required to operate the business etc.
CLOSING
THE ESCROW
If the offer is accepted and the all the contingencies
are removed, the transaction will be placed in escrow where
a bulk sales notice will be published to ensure the business
is delivered free and clear of liabilities to the new owner.
Prior to the close of escrow we assist the buyer and the seller
in performing a physical inventory, equipment and premises
inspection to ensure that all the business assets are in operating
condition and inventory is in the range stated by the contract.
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Mergers & Acquisitions 
