Information a Serious Buyer Needs
Buying a business can be a time-consuming and complex process. A smart buyer knows that gathering and processing information is key to a successful business venture.
The Business Plan
Creating a Business Plan is the key element for a serious buyer. With the initial outline of a potential Plan, a buyer can more easily discern if a prospective business offering truly fits his or her long-term goals. Once the appropriate business has been selected, the Plan will be detailed specifically for that business; it will also help to focus the spectrum of negotiations concerning price and terms. Following the purchase, the Plan will become an ever-evolving roadmap for the long-term vision and development of the business.
The process for securing financing for the purchase of a business needs to start early. In order to examine businesses within an appropriate price range, a buyer should seek pre-approval for financing through a lending agency–this brings efficiency and credibility to the buyer’s search. Pre-approval will also simplify the paperwork prior to closing. To prepare for the lending process, be ready to provide at least 3 years of signed tax records, asset list, resume’
An informed buyer is the best buyer…he or she will know what to expect within the search process and will be prepared to meet the challenges
Register With A Broker
Searching for a business can be a full-time job. A business broker can assist you in locating a business that fits your requirements. By registering with C. G. Reicher Associates, your “blind profile” will be placed on several of the key national
Know the Business
When you have found a viable candidate business, immerse yourself in the information provided to you by the broker. Learn as much as you can about the industry/niche that this business is in. Be well prepared for your telephone conversations or personal interviews with the seller. Ask insightful questions and listen carefully to the seller’s responses. A smart buyer takes notes.
Maintain a Timeline and Communicate Regularly
During the inquiry stage, a Buyer will gain credibility if he/she communicates regularly with the broker and completes tasks within agreed upon timelines. During the Negotiation/Financing period of the acquisition process, a Buyer needs to maintain a disciplined time schedule, particularly with the Buyer’s accountant, lender