Buying
The usual first question from a Buyer is: "What kind of businesses do you have?" The short answer is, "lots." That's why a confidential discussion with a VR associate is a logical first step to find a business that meets a Buyer's lifestyle, experiences, interests, goals, budget and level of management involvement. This discussion will allow us to narrow the search to a few appropriate business opportunities. The next step is to review the specifics of the businesses that are of interest to you.
Unless you've bought or sold a business in the past, you'll find that buying a business can be a confusing and even trying experience for the unprepared. That's why it's important for you to take time to read this explanation of the process. Even if you're a veteran in business transfers, understanding the VR process will assist you in working with our firm.
THE BUYING PROCESS
1. COMMITMENT. Your commitment to purchase a business at price and terms consistent with the marketplace.
2. DISCLOSURE. You sign an agreement promising to maintain confidentiality for all the information provided to you on the businesses we discuss.
3. PRE-QUALIFICATION. You provide us with information about yourself, such as resume and financial information. The more we know about you, the more likely we can find a business you will like. The more information we provide the Seller, the better the terms he will consider.
4. REVIEW. Together we discuss and review various types of businesses and select some that appeal to you.
5. SHOWING. We show you the businesses you are interested in and discuss the important factors of each.
6. MEETING. A meeting between you, the Seller and us may take place. This gives you the chance to ask questions you may have about how the business operates and to describe your qualifications to the Seller.
7. OFFER TO PURCHASE. You write, with our assistance, an offer to purchase the business you like.
a. Earnest money is required to demonstrate your seriousness to the Seller.
b. Most offers are contingent upon your inspection of the books and records of the business, assignment of a lease or other factors important to you. The offer is not binding until you remove all contingencies.
8. PRESENT OFFER. We present your offer to the Seller and carefully explain the terms and conditions of the offer to the Seller and decision makers.
9. ACCEPTANCE. The Seller accepts the offer as it is written or writes a counteroffer. When Buyer and Seller agree to all terms and conditions of the sale, the offer becomes a Purchase and Sale Agreement.
10. DUE DILIGENCE. You meet with the Seller to examine the financial records. Any questions you have are resolved at this time and all contingencies are addressed. In most states the lawyer performs a lien search on the business to identify any secured creditors.
11. LEASE ASSIGNMENT. We work with the landlord to get an assignment of the current lease or a new lease for you.
12. CONTINGENCY REMOVAL. You remove all contingencies in the Agreement. It is now a binding agreement.
13. OPEN ESCROW/CLOSING LAWYER. We provide all documents to the transferring agent or lawyer so they can provide the closing papers.
14. NOTE & LEASE ASSUMPTION. We make arrangements to assign any notes or equipment leases.
15. INVENTORY. Arrangements are made for you and the Seller to count and price the inventory (if required).
16. CLOSING. All parties meet to sign documents.
BUY A FRANCHISE
VR Business Brokers has evaluated franchise opportunities and developed the "VR 50" list of franchises that could be more compatible with your business expectations. Many of these franchises qualify for SBA financing with a low down payment. Also, many franchises provide internal financing. Contact us to learn more about a franchise opportunity for you.
