Have you ever dreamed of owning your very own business? Statistics show that nearly two thirds of all people dream of owning their own business. If this describes you, then you may wish to consider seeking the advice of a NOBBA Business Broker! Business Brokers (often called intermediaries or acquisition advisors) are specialists in the acquisition of businesses and can assist you in finding the right business for you as an individual or for a strategic acquisition for your existing business. Most brokers have relationships with business owners who are attempting to sell their businesses and will carry a number of “listings” which are easy to find options for a potential buyer.
Working with an experienced NOBBA business broker to acquire a business or a franchise, can save you time, educate you on asking the right questions of a seller, and provide valuable insight into the financial health and value of the business. An experienced broker- advisor can assist you in structuring an offer, coordinating a thorough due diligence review and in negotiating on your behalf.
Along the way our well connected NOBBA Brokers can recommend financiers, attorneys, accountants, wealth managers and other business professionals to assist in each stage of the transaction. Many brokers are willing to help buyers even when they are representing the seller, knowing that without a satisfied buyer, there can be no sale for their client!
Contact NOBBA to Learn More About Buying a Business
Some business brokers are willing to represent potential buyers in finding the right business that is not yet for sale. In some industries, finding the right business isn’t as easy as searching through the online offerings. In these cases, a business broker with their many connections, may be willing to retain a potential buyer as client typically charging a retainer as well as a success fee upon the closing of an acquisition. These types of “Buy-Side Engagements” are most frequently entered into to find larger, harder to find businesses that may not yet be available for sale.
Steps for Buying a Business
Do some soul searching and self-assessment to determine if business ownership is right for you and your family.
Determine your own skills, experience, goals, desires and financial capabilities. If you are an existing business owner seeking a strategic acquisition, it is important to consider the needs of your business as well.
Research and educate yourself on the current marketplace, understanding valuation concepts, and locate where businesses are listed for sale such as the businesses represented here.
Consider hiring a NOBBA Business Broker to represent you or at the very least, have a conversation with a handful of business brokers. They can teach you a great deal and give you some options you may not be able to find on your own.
Begin searching! Identify some prospects and ask some good questions, review detailed information such as the seller’s offering prospectus and financial records, set up a meeting with the seller and their broker, if they are represented.
Carefully draft an offering document such as an LOI (Letter of Intent) or other purchase document. Consider consulting with a business broker and/or an attorney to assist you in this as there are many details to consider regarding terms and conditions.
If you intend to be financed, find the right small business lender to meet your needs. NOBBA has many Financing Experts amongst its membership for you to choose from. Inspect owner’s representations and coordinate due diligence including accounting, legal and financing.
Conduct a thorough due diligence review making certain the business is as it has been represented. Make your final decision to purchase the business by the end of this stage.
Coordinate with the seller and their broker, if represented, to arrange utility, lease, permit and license transfers. Be certain to use an attorney to properly draft the closing documents.
Thinking of Buying?
Buying a business can be extremely rewarding for many reasons, to be your own boss, have job security, freedom to control your own hours, build equity and create wealth. Find the business of your dreams and talk to a NOBBA Business Broker.