Buyer FAQ's
[Buyers] [Buyers FAQ's]
Do I need an attorney?
What happens when I find a business I want to buy?
What should I look for in a business?
Why should I buy a business rather than start one?
Why should I go to a business broker?
Do I need an attorney?
It is advisable to have an attorney review the legal documents. It is important, however, that the attorney you hire is familiar with the business buying process and has the time available to handle the paperwork on a timely basis. An experienced attorney can be of real assistance in making sure that all of the details are handled properly.
What happens when I find a business I want to buy?
When you find a business, Carrara will be able to answer many of your questions immediately or will research them for you. After you have submitted the necessary Buyer documents, (non-disclosure, buyer profile, and financial statement) you will be provided a detailed business profile to review and decide if you wish to place an offer. The next step is for the broker to prepare an offer based on the price and terms you feel are appropriate. This offer will generally be subject to your approval of the actual books and records supporting the figures that have been supplied to you. The offer is then presented to the seller who can approve it, reject it, or counter it with his or her own offer. You, obviously, have the decision of accepting the counter proposal from the seller or rejecting it and going on to consider other businesses. If you and the seller agree on the price and terms, the next step is for you to do your "due diligence." You may choose to bring in other outside advisors or to do it on your own - the choice is yours. Once you have checked and approved those areas of concern, the closing documents can be prepared, and your purchase of the business can be successfully closed.
What should I look for in a business?
Obviously, you want to consider only those businesses that you would feel comfortable owning and operating. You also want to consider only those businesses that you can afford with the cash you have available. In addition, the business you buy must be able to supply you with enough income - after making loan payments – and pay other bills. However, you should look at a business with an eye toward what you can do with it; how you can improve it and make it more productive and profitable.
Why should I buy a business rather than start one?
An existing business has a track record. The failure rate in small business is largely in the start-up phase. The existing business has demonstrated that there is a need for that product or service. An existing business has immediate cash flow whereby a startup is a financial drain. Also, many sellers will stay and train a new owner and most will also supply some financing. This can be the difference in being successful in the short term.
Why should I go to a business broker?
A professional business broker like Carrara can be helpful in many ways. Carrara can provide you with a selection of different and, in many cases, unique businesses, including many that you would not be able to find on your own. We locate companies that are suited to your background and financial qualifications. Carrara is an excellent source of information about small business and the business buying process. They are familiar with the market and can advise you about trends, pricing and what is happening locally. Carrara will guide you in the right direction and you may want to enlist other professionals who may be able to assist you.
[Buyers] [Buyers FAQ's]
