Call us now : (201) 774-3555
Finding the right business

While searching can be straightforward, be prepared for the process. Understand the commitment involved and assemble a team of advisors (lawyer, accountant) to guide you.

Step 1: Before diving in, take a step back and consider:

● Your interests and skills: What industry are you passionate about and have the skills to succeed in?

● Products or services: What can you confidently sell and market? Choosing a business that aligns with your strengths will make ownership more enjoyable and successful.

Step 2: Get expert help

Consider hiring a business broker. They act as your guide throughout the buying process. Their experience includes both buying and selling businesses, giving them a well-rounded perspective. They can help you:

● Negotiate the purchase

● Draft and sign contracts

● Find businesses for sale through their network

Step 3: Set up goals & Plan before you shop

Don’t jump into your search blind. Set clear goals to streamline your search process:

● Budget: Determine how much you can comfortably afford to spend.

● Industry & Size: What kind of business are you interested in (restaurant, retail, etc.) and how big should it be (number of employees, revenue)?

● Location & Staff: Where do you want to operate, and do you need existing staff?

● Having clear goals will help you find the perfect business opportunity.

Step 4: Searching business on sale

Step 5: Submit Offers:

Following a thorough review of the offering memorandum and a meeting with the business owner, schedule site visits for businesses that align with your criteria. This allows you to assess the operations firsthand. If a business impresses you, submit a contingent offer outlining the terms under which you’d move forward with the purchase. A successful offer initiates the next phase of the buying process.

Step 6: Due Diligence: Protecting Your Investment

Before finalizing the purchase, it’s crucial to thoroughly examine the business. This process, called “due diligence,” involves a team of professionals (lawyers, accountants) verifying the information provided by the seller. Here’s what they’ll typically look at:

● Business Legalities: Licenses, permits, and formation documents ensure the business operates legally.

● Environmental Issues: Environmental inspections reveal any potential liabilities.

● Agreements and Assets: A review of contracts, leases, and a physical inventory confirms the business’s ownership and obligations.

● Financial Health: Past financial statements and bank statements provide a clear picture of the business’s financial performance.

● Debt and Claims: A lien search uncovers any outstanding debts or claims against the business.

● Employee Restrictions: Non-compete agreements prevent former owners from competing with you. By conducting thorough due diligence, you can make an informed decision and protect yourself from unforeseen problems.

Step 7: Closing the deal and moving forward

With all supporting documents, leases, and contingencies finalized, you’re ready to close the deal! This signifies the official transfer of ownership.  Congratulations – you’re now a business owner! The next step is a smooth transition period, where you’ll take the reins and ensure a successful handover of operations.

Compare listings