2. Confidentiality. You sign an agreement with your broker promising not to disclose that the business is for sale and to maintain confidentiality of all the information provided to you on any businesses discussed. This Agreement will keep you from directly approaching the seller or employees of the business.

3. Information. The more you share about yourself with your broker , the more likely he/she can find the business that's just right for you. The more information the seller has about you, the more likely he/she will offer more desirable terms. Any information about yourself, such as a resume, personal information such as hobbies etc., is helpful. However, most likely, the seller will require your personal financial statement and an authorization to run a credit check on you, before disclosing confidential or detail financial information on the business, or even accepting an offer from you.

4. Qualification. Your broker will meet with you and discuss different types of businesses that may be within your means. You may bring at that time a personal financial statement. You will then review summary information on various businesses, decide which ones appeal to you and your broker will set up a time to show you the businesses.

5. Showing. Upon the seller reviewing your qualifications and your means to acquire the business, your broker takes you to the businesses you are interested in, introduces you to the seller when possible and then listens to your thoughts about each business and answers any questions you may have.

6. Buyer-Seller Meeting. After you have found a business you are interested in, a meeting with you, the seller and the broker will be arranged. At this meeting you have the opportunity to ask detailed questions you may have about the business and to present the seller with your qualifications and show the financial means to acquire the business. Seller and Buyer disclose enough information for Buyer to present an offer through broker.

7. Offer to Purchase. Once you have found the business you can afford and believe you would like to own, your broker will assist you in making an offer on the business. A deposit (or earnest money ) is required, usually for 10% of the offered price, to demonstrate your seriousness to the seller. Most offers are subject to certain conditions being met such as approval of books and records, assignment of lease, equipment in good working condition, and verification of the cash flow or owner's benefit, etc. Until you remove all contingencies to your satisfaction, your earnest money will be returned should you be unhappy with something you discover while doing your investigation.

8. Present Offer. Your broker presents your offer to the seller. At this point, the broker gives the seller the buyer's background, financial information and experience. If the seller feels secure in the buyer's abilities and feels comfortable with him/her the terms are much more likely to be considered seriously.

10. Explanation. Your broker will make sure the seller fully understands the terms and conditions of your offer along with your reasons for the offering price, terms and conditions.

11. Acceptance. One of two things will happen at this point, the seller will either accept the offer as is, or he will write a counter offer.

12. Mutual Acceptance. When buyer and seller agree to all terms and conditions of the sale, the offer becomes a Purchase and Sale Agreement.

13. Due Diligence  -Inspection. Buyers meet with the sellers at the broker's office to examine the financial records of the business. Any questions you have are resolved. That is, if the Seller accepts your offer, you initiate due diligence on the business in order to learn more about the business and to make sure it is what you have been told it is. Should you discover unsalvageable discrepancies, you can back out completely or restructure your offer to reflect any deficiencies discovered during this process.

14. Contingency Removal. Once all of the buyer's contingencies have been satisfied and cleared, the offer becomes a Purchase and Sale Agreement.

15. Lease Assignment. The broker or the seller will help the buyer work with the landlord to get an assignment of the current lease or a new lease for the buyer.

16. Open Escrow. The broker provides all necessary documents to the transferring agent so they can prepare the closing papers. We use attorneys for the closing process.

17. Lien Search. In most states the closing-escrow attorney performs a lien search on the business to identify any secured creditors.

18. Note & Lease Assumptions. The broker helps to make arrangements to assign any notes or equipment leases.

19. Inventory. Arrangements are made for the buyer and the seller to count and price the inventory (if required).

20. Closing. Buyer, Seller, Broker and closing agent meet to sign the papers and disburse funds.

If you have other questions, please call us at any time. We'll be happy to help you in any way we can.

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