Step by step guide to buying a business | South Coast Business Bulletin

If you are considering buying a business, it is helpful to know the various steps in the business transaction process. Below is a brief summary of the steps involved.

1. Preparation: Be prepared to demonstrate that you are a serious buyer to sellers, business brokers/intermediaries, legal and financial professionals, etc. Make sure your financial resources match up with the target business opportunity. Typically you will need 20-25 percent cash down payment, access to working capital, and a good credit rating to enable yourself to qualify for acquisition financing from a lender.

2. Finding A Business: When looking for a business to purchase, it is helpful to be clear about your reasons for wanting to buy a business. You will want to evaluate potential opportunities based on how well they meet your financial needs and how well they match up with your reasons for wanting to buy. Also be flexible in your search because historical statistics reveal that Buyers actually purchase a different type of business from what they originally sought in 7 of 10 transactions or 70 percent of the time.

3. Preliminary Review and Getting All Your Questions Answered: Once you find a business you are interested in make sure the business broker/intermediary or the seller answers all your questions to your satisfaction. Review all information carefully. Buying a business is serious business. There are financial risks involved so do not take any short cuts. Consult appropriate professionals throughout the process.

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Step by step guide to buying a business | South Coast Business Bulletin:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.