Global Business Brokerage Inc.  where you will experience a "World of Difference"

The Buying Process

Buying the Right Business!

Unless you have bought or sold businesses in the past, you may find that buying a business can be very confusing.  That is why it is important for you to read the information contained below in order to help you better understand the process.  Even if you are seasoned in business transfers, understanding the Global Business Brokerage process will assist you in working with our firm.

Getting Started:  Answering Questions!

The search for a business starts with a call or a visit to our web site.  Sometimes the prospective Buyer is a Corporation, Private Investment Group or a sophisticated Private Investor who has a definite idea of the type of business they want.  But more often than not, the Buyer is a first time Buyer and is still trying to decide on the very first question... "What type of business do I want?"

We have many businesses for sale and access to businesses all over the world, so the task at hand is matching you to the business that fits you perfectly, may  take some time and effort on our part and yours.  The first and the most important step is to have you answer some tough questions.  By asking these questions, we are narrowing down our search and saving you time and aggravation.  We can help you find the business of your dreams, but only after you answer such questions as,

• How many days per week are you comfortable working?
• Do you like having employees?
• How much cash do you have for a down payment?
• How much do you want to earn per year?

Filling out the Buyer's Profile can be a great way to help us to help you find the right business!

Defining the Search: 

After we have talked with you and you have filled out a Profile, we can begin narrowing down the search to find appropriate business opportunities that fit your needs, the location you are interested in, as well as the type of money you can expect for your return.

We will send you some non-confidential summary sheets for businesses you may want to know more about.  This step takes us to the next level.

Focusing on a Few:

After you have narrowed your search and find a business that you are interested in, we will have you fill out a "Non-Disclosure Agreement" and a "Confidentiality Agreement".  This level becomes one of mutual trust and obligation between you, Global Business Brokerage, Inc. and the Seller's of the business(es).  Now you will be exposed to the specifics about the businesses you are interested in and your agreement to keep the information you receive as confidential is required.  When you return these documents to us, we will divulge the name and address of the business you are interested in.  We will fax or send you one when it gets to that point.

Most business owners who are selling businesses, require that we work with selling their businesses, while affording them the opportunity to continue to run their businesses.  This means that oftentimes, even their employees may not know that the business is for sale.  So, we will work with you to answer your questions about the business before we introduce you to the seller. 

The Business Profile:

We will provide you with a Business Profile Report on the business you are interested in and it is written to provide you with the information you will need in order to make a decision about whether the business is the right one for you.  A typical Business Profile contains a detailed description of the business, a summary of financial data, additional business information such as pertinent information on lease agreements, number of employees and much more.  After a thorough review of the Business Profile and discussions with your Global Business Broker, you will have an in depth understanding of the business and its operations.

Meeting and Touring the Facility:

After reading the Profile, reviewing pertinent financial data, and deciding on the businesses you want to take a closer look at, we will schedule a meeting with the business owner, usually after business hours, At this time, you will want to prepare a list of questions for the business owner and give it to your Global Business Brokerage representative prior to your meeting in order that he may present it to the owner, so that he has answers to your questions upon arrival, thereby maximizing your time and the sellers.

At this point, you may feel that you have enough information to make an offer for the business.  However, others require more analysis time and it is not unusual to request a second meeting with the sellers prior to making an offer.

Making an Offer:

After meeting the business owner and touring the business, the next step is to make an offer for that business.  Making an offer is not a final step.  In fact, it should be viewed as the first of several steps, each of which brings the Buyer and the Seller closer to completing the transaction.

Since this is a privately held business, the Buyer is obligated to make an offer prior to reviewing the business's internal financial records.  The Buyer must understand that their offer is always contingent upon the Seller proving his or her financial representations.  "Due Diligence" is costly and time-consuming and it must be done after an agreement on price and terms is reached.

It is the Seller's responsibility to prove everything to the Buyer.  Your agreement on price and terms will be "non-binding" until you have had the opportunity to see all financial records and we have removed all contingencies. 

In fact, we recommend that when you reach this stage, that you hire a financial representative if you do not feel comfortable in conducting the analysis on your own.  Global Business Brokerage can help guide you in this process and make it as effortless as possible.

The Offer: 

Once you have decided this is the business you definitely want, a "Purchase and Offer Agreement" is drawn up and presented to the sellers.  This is similar to when you purchase a home. At this time you would provide an escrow deposit of approximately 10% of the purchase price, which would be deposited in the closing attorney's escrow account.  If at any time prior to closing, the terms and conditions provided in the Listing Agreement cannot be met or an acceptable lease cannot be secured to your satisfaction, the escrow deposit will be returned to you.

The seller either accepts the terms and conditions as offered, or provides a "Counter Offer".  Once there is a meeting of the minds on terms and conditions, the contract becomes binding, based on your review of the books and records which must be substantiated per the listing agreement.  In addition, if a lease for the property is part of the agreement, a further contingency would be to secure written authority by the landlord to transition the existing lease and add any clauses you feel appropriate (i.e. additional years).

Once the Due Diligence process is complete, the Buyer and Seller will be required to sign a statement reflecting that all contingencies for this sale have been removed and the closing attorney is authorized to begin to prepare the closing documents.  The closing attorney is a neutral attorney in this process and does not represent the Buyer or the Seller.  He represents the closing transaction.  Costs for his services are approximately 1% of the selling price, split equally between the Buyer and Seller and will be collected once they have signed the "Contingency Removal Agreement".  At this point, you may want to decide whether you want an attorney to represent you for the closing.

Closing and The Beginning of a New Life

Global Business Brokerage, Inc. does not abandon you after the sale of your business.  We can provide you with resources to help you succeed in your new business.  We have consultants available to help you set up various aspects of  starting your own business, including office setup, management, accounting systems, phone and computer systems, and even office design.  We work with you step by step to guide you along the way and to help make your transition to a new business owner stress fee and simple.

So now, it is time to contact Global Business Brokerage and get started on your search for that perfect business for you.  Go back to the Home Page and call, fax or e-mail us to help you begin your search, to ask for additional information or to fill out a Buyer's Profile so that we can begin our search for the perfect business for you.  You are only a step away from the American Dream!