Buy a Business Resources

Buyer Tips

Buying a business is a major decision. It will not only affect you financially, but it is also, and perhaps more importantly, a lifestyle decision. How you live your life is shaped and influenced by what you do for a living. If you have decided that now may be an opportune time to consider going into business for yourself, working with a Vested Business Broker can provide you with the professional assistance necessary for a smooth and successful transaction.

Small business owners make up over 98% of businesses owned in this country today. People want to control their own future by taking advantage of their own skills and abilities. Of course people want to make money, but for many people the sense of being in control of their own destiny, building and running a successful business is just as important. Every business is not perfect for every person and at Vested Business Brokers we help our clients find and purchase the right business.

An existing business has a history which can be used to evaluate the business. An existing business evaluation will show the demand for its products or services, and it should have, among other things, detailed financial records. Sometimes, a seller will agree to stay with the business and help to train a new owner and even to provide seller financing. These are important points because smooth transition is vital to the success of a new business owner

A buyer should only consider a business he or she wants to own and operate. Dedicating time and effort is important when starting your own business. How much time you can dedicate to running your own business is as important as how much money you can afford to pay. If your business is going to be your sole source of income, the amount of money you will need to take out of the business should be factored in to the amount of money you can afford to put into your business for its success and growth.

Customers can be wary of shopping at a business which appears to be for sale. Confidentiality during the transition is critically important to maintain the integrity of your business during this time. Employees experience anxiety and often leave if they think their job security may be at risk. At Vested Business Brokers we take the issues of confidentiality very seriously through the buying process and are available to help as your “new management” takes over.

Your Vested Business Broker will review the financial records of the business and make a recommendation about the price. Our professional valuation of businesses is based on the many factors, including the last 3 years tax returns, value of FFE (Furniture/Fixture/Equipment), inventory, net income, future potential and growth.

Relates to all major issues a buyer should investigate prior to entering into a fully binding agreement to purchase a business. At Vested Business Brokers, due diligence is a systematic process for acquiring and analyzing information to help a buyer or seller to determine whether or not to proceed with a proposed business transaction. The information your broker will investigate relates to all aspects of the business to be purchased. Due diligence will include both quantitative information, such as sales information and other financials, qualitative information, such as an assessment of the existing management, necessary and existing licenses, location and other technical or industry specific information.

Many times a seller will accept a portion of the total price paid for a business in some sort of deferred payment - whether in the form of a seller note or payments contingent on the performance of the business. Acquisition loans from third party lenders are also available. Vested has contacts with both government and private lenders to assist in this matter Therefore, a cash investment of 1/3 to 1/2 of the purchase price may be sufficient to complete a transaction, your Vested Business Broker will help you determine the financial specifics based on your needs.

Once you have expressed an interest in buying a business, your Vested Business Broker will assist you in registering as a buyer with our company. Visit the buyer area on our web site or call Vested toll free at 1-877-Sell-A-Biz (735-5224).

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