| 1. |
Commitment |
| |
Acquiring a business is a serious commitment
for all involved. You must have the mental and financial
commitment to offer price and terms consistent with the
marketplace. Mercury Business Brokerage can help you find the
right business and structure a deal if you’re committed to
follow through and if you have the financial means to make a
reasonable down payment.
|
| 2. |
Finding the Right
Business |
| |
A business is available for virtually every
budget and ability. Mercury Business Brokerage will help you
find the right business and will help you develop an acquisition
strategy that fits your price and background. If you’re
looking for a specific business, we can perform industry and
market searches to find the exact business that meets your
needs. Then we can complete market evaluations and industry
comparisons to help you value your selection fairly.
|
| 3. |
Confidentiality |
| |
Confidentiality is
critical to the seller. You will sign an agreement and promise
to keep the seller’s information confidential for each
business we show you. Mercury Business Brokerage does its utmost
to ensure that the seller’s confidentiality is maintained. A
breach in confidentiality could significantly harm the seller.
|
| 4. |
Business Selection |
| |
We will help you select businesses that fit
your criteria and circumstances. We will provide you with
additional details of the businesses you have selected and will
help you narrow the search to one or two of particular interest.
|
| 5. |
Buyer Background |
| |
At this point, Mercury Business Brokerage has a
fiduciary responsibility to the seller to verify that you have
the ability to purchase the business you have selected, before
proceeding further with additional disclosures and meetings. Mercury Business Brokerage
will have you complete a buyer profile that includes disclosures
of your financial ability to complete a transaction and a résumé
and background information about your experience. This step
helps us to ensure that you’re considering a business that
fits your skills, interests, and abilities before involving the
seller in the process.
|
| 6. |
Showing the Business
and Meeting the Seller |
| |
At this point, you will receive a complete
package on the business. We can arrange for a visit to the
business so you can walk through the facilities and view the
operation firsthand. Then we can arrange a meeting with the
seller so you can get answers to any additional questions you
may have.
|
| 7. |
Making the Offer |
| |
Now you are ready to proceed by making an offer
to purchase with an earnest-money deposit. This step always
depends on the seller’s acceptance of the price and terms and
on contingencies for such items as verification of records,
lease assignment, lien removal, acquiring required licenses and
permits, acceptance of a non-compete agreement, training period,
and final inventory and inspections. During this period, your
earnest money is held in escrow.
|
| 8. |
Presentation of the
Offer |
| |
Mercury Business Brokerage
then presents your offer, along with your background,
experience, and favorable points. Remember, the seller is most
likely going to finance part of the purchase price.
|
| 9. |
Negotiation and
Acceptance |
| |
Now the seller will either accept or decline
your offer or may make a counter offer. Mercury Business Brokerage
will help negotiate the terms of the offer and find solutions
that satisfy both parties whenever possible. Once the seller
accepts an offer, the business comes off the market. The offer
to purchase becomes a purchase and sale agreement, with
contingencies.
|
| 10. |
Due Diligence and
Contingency Removal |
| |
Now begins the in-depth inspection of the
seller’s records and accounts. This step does not occur before
the offer is made, because experience shows that in-depth due
diligence is often wasted if the price and terms have not been
negotiated first. Agreement for the lease to be assigned,
public-records searches, and verification of assumable loans and
trade agreements occur. Once all the contingencies have been
removed, then the purchase and sale agreement becomes binding.
|
| 11. |
Open Escrow
|
| |
The purchase and sale agreement and all other
documents relating to the sale are turned over to an escrow
company. The escrow company prepares all the closing papers;
performs lien searches; and prorates rents, deposits, taxes and
other items to the closing date. Escrow also makes sure all
secured creditors are satisfied, all other security agreements
and related documents are completed, and final arrangements for
the payoff or assumption of all notes and leases are made. All
parties review these arrangements to make sure they meet
everyone’s satisfaction. Escrow also keeps copies for at least
three years following the close of the sale. Escrow costs are
minimal and are shared equally between the buyer and the seller.
|
| 12. |
Inventory and Closing |
| |
Final inventory is taken, and the transaction
is closed. Then it’s celebration time—you’ve joined the
ranks of those who are living the American Dream! |
