Updated: May 26, 2021
It’s not always easy trying to identify a business opportunity that fits your personal, family and career objectives. As your business broker, we’ll take the time to understand your needs before locating and negotiating a business that aligns with your goals.
1 - Initial Meeting
During your initial meeting, you will be asked a series of questions to help your broker understand what type of business he or she should show you. You should know how much money you want to work with and be prepared to provide proof of funds. Most sellers will not disclose confidential details without knowing you are able to complete a transaction or unless you sign a confidentiality agreement.
2 - Research & Presentation
Once we’ve gathered detailed information about your financial capabilities, your skills and experiences, as well as your personal life goals, we’ll start assembling a list of potential businesses that will interest you the most. Our large database of businesses allow us to provide you with the most detailed and tailored selection. During our presentation, we’ll highlight each business and explain how they fit your criteria, working with you to find the best business on the market.
3 - Private Meeting with Seller
After you have chosen a particular business that interest you, we’ll arrange a meeting with the seller. During this step of the process, you’ll most likely view the business before or after the business’s hours of operation and discuss the business further with the seller directly. The purpose of this initial meeting is to help you make an informed decision on whether or not to pursue the business any further.
4 - Evaluation of Business
Once you have found a business that you would like to buy, the next step is to estimate its value by conducting a fair market analysis. While you may have not have had full access to the business’ financial books and records, evaluating the business based on the acquired information and calculations based on the economy and future market growth will allow you to make the right offer.
5 - Offer & Acceptance
When you decide you are ready to make an offer, we’ll coordinate and handle all the negotiations between you and the seller until you both agree with the final terms of the purchase. We will assist you in identifying the important conditions and contingencies the offer should include. You’ll likely be required to provide an Earnest Money Deposit (EMD) check typically between 5-10%, which will only be deposited if the offer is accepted by the seller.
6 - Financial Due Diligence
Once your offer is accepted by the seller, you will then move into the due diligence phase where you will review and inspect the furniture, fixtures, equipment, financials, contracts, intellectual property and any outstanding legal matter that the business has. Knowing all the details of the existing business will not only help you determine the financial risk involved but it will provide you with a stronger position for negotiation.
7 - Lease Negotiation
The next step is to examine whether the business’ location is owned by the seller or leased by a landlord. In this step, one of three things can happen:
Landlord agrees to transfer current lease. If the landlord agrees to transfer the current lease, we will evaluate the terms and request any modifications that would be favorable to you.
Landlord does not agree to transfer lease, initially. If the landlord does not agree to transfer the lease, we will try to negotiate and make the deal viable. If an agreement cannot be met or the landlord simply refuses to transfer the lease, we will help you find a different business to buy.
There is no landlord. If the seller currently owns the property that the business is located on, we will handle the negotiation until both you and the seller can agree with the final terms of the purchase. Because Florida Connexion has experience in both commercial real estate and business brokerage, this process will be a seamless experience for you.
Please be aware that these negotiation can sometimes add time and fees to the process.
8 - Closing
If after due diligence you decide to continue with the transaction, the next step is the formal closing. On the determined date and location, we will review the inventory, final documents and tie up any loose ends. Should there be any issues or discrepancies, we will negotiate the deal amount appropriately. We put your best interest first and will work to resolve any issues so that the titles and assets are properly transferred to you.
9 - Conclusion
We are there for our clients even after the transaction has been completed and the business is yours. Our extensive background and experience in business management means that we have the connections you need to run a successful business. Whether you need a proficient accountant or a specialized attorney, we’ll be your biggest ally by putting you in contact with the right people.
Want to know more, then schedule a strategic meeting with me at this link.