Curious what the process of buying a business looks like? Our brief outline below will help get you started.
Once you inquire about a particular business of interest, Sunbelt Business Brokers of Shreveport will send you a Non-Disclosure Agreement (NDA) to review. After that document has been signed we will send you information including a Confidential Information Memorandum (CIM) and financial information about the business.
Once we have answered all your initial questions about the business we will set up a meeting between you and the seller. This may begin with a conference call or an on-site visit of the business. The most important thing to do at this step is prepare questions to ask the seller.
The next step in the buying process is to prepare an offer. Once you have made an offer that has been accepted by the seller the due diligence process will begin. Typically, you will be required to deposit funds into an escrow account to demonstrate your seriousness as a buyer and, in exchange, the seller will postpone entertaining other buyers while you complete due diligence.
If all steps of the process have been done right, closing is merely getting together to review and sign agreements. That’s the mark of a solid deal. You may have had your own attorney representing you to review all the documents, or perhaps you and the seller mutually agreed to use a transaction lawyer to save time and money.
This is an oversimplification of the process, but it’s good to have an understanding of the steps. Between these milestone transaction steps there exist many activities and exchanges and then there’s the whole financing topic, which is a stand-alone subject in itself. Also, no two business transactions are alike but don’t worry, give us a call and we’ll fill in all the blanks.
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