While some buyers are looking to purchase a business to provide income, others are looking to grow their current business through acquisition. Oftentimes, buyers are looking to fulfill a lifelong dream of financial independence. Regardless of the intent behind the purchase, buying a business can be both exciting and overwhelming at the same time.
That’s why so many California buyers turn to a M&A advisor or business broker in Los Angeles to help them achieve their desired results. A reputable firm can locate a business for sale that fits your unique requirements. They also will guide you through the process, ensuring that your experience is streamlined and that the outcome is fair and successful for all parties involved.
The following is a brief high-level overview of the buying process.
You make a commitment to purchase a business at a price and terms consistent with the local marketplace. It’s important to look for opportunities that are consistent with your needs and abilities as a business owner. Keystone Business Advisors focuses on the underserved market of businesses with annual sales between $2 million and $100 million.
You sign an agreement promising not to disclose the confidential information we provide to you on the specific businesses we discuss. Confidentiality Agreements are specific to particular businesses and must reference that business to be valid. You can review and execute a Confidentiality Agreement online for each of our Businesses for Sale by clicking on the Inquire Now button for a particular business listing.
All buyers are expected to provide a limited amount of information about themselves and their qualifications to purchase a particular business. 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 or she will consider. We require a buyer profile in addition to the Confidentiality Agreement prior to disclosing confidential information for any of our business listings. You can now input your buyer profile information online when you inquire about one of our Businesses for Sale engagements at the time you execute a confidentiality agreement.
Together, we discuss and review various types of businesses and select some that might appeal to you. When it comes to finding businesses that are a good fit for your specific needs and interests, Keystone Business Advisors works in a similar vein to a traditional M&A advisor or business broker in Ventura County, Los Angeles County, or surrounding areas. If you have inquired regarding a specific business, we will provide you with a thorough 20 to 60 page Confidential Information Memorandum that will provide you a detailed overview of the business and its value attributes.
We introduce you to the businesses you may be interested in and discuss the important factors of each. These factors include everything from how long the business has been operating to why the present owner is selling.
At this point, we may set up a meeting between you and the selling party. This meeting will give you the chance to ask questions about how the business operates and to describe your qualifications to the seller. It is essential that a regional business broker in Los Angeles attends on your behalf. A representative from Keystone Business Advisors will support you at this important meeting.
Financial records are essential in order to allow you to get a sense for how the business has been performing. You will be provided income statements, balance sheets, and other financial reports for the business’s last three years. This will provide you a detailed view of the revenue and expenses to further evaluate the business.
Either your attorney or Keystone Business Advisors will create an offer or Letter of Intent to purchase the business based on the terms and conditions you specify. You may be required to put up earnest money to demonstrate your seriousness to the seller. Most offers are contingent upon your due diligence of the business in order to verify that it has been accurately presented to you. The offer is not binding until you are satisfied and remove all contingencies.
At this next stage, we will present your offer to the seller. Keystone Business Advisors will help you put together an attractive offer that also fits your unique requirements. We prefer a collaborative approach where we have direct access to your legal, tax, and other key advisors to help facilitate a deal that is tax advantageous and minimizes risk to the parties.
The seller will receive key information about your background, experience, financials, and qualifications. They will also receive details about your offering price and requested terms and conditions. Needless to say, favorable background information about you will result in favorable consideration of your offer.
We carefully explain the terms and conditions of the offer to the seller and decision-makers. Your M&A advisor or business broker in Ventura County, Los Angeles County, and surrounding areas will manage this process. Keystone Business Advisors is made up of expert negotiators who will work tirelessly on your behalf with successful tactics and strategies.
The seller accepts your offer to purchase as presented or submits a counteroffer. When buyer and seller agree to all terms and conditions of the sale, the offer becomes a Purchase and Sale Agreement, contingent on your successful inspection of the business and its books.
You meet with the seller of the business to examine its financial records. Any questions and concerns you have will be resolved at this time. We assist with the due diligence process and utilize an online secure data room to facilitate a smooth and secure process.
If you are satisfied with your inspection of the business, you remove all contingencies in the agreement. It is now a binding agreement.
In the event that a landlord is involved with the business dealings, we will work with this entity to either get an assignment of the current lease or new lease for you.
In certain states, such as California, we encourage clients to adhere to the local bulk sales laws by working with an escrow company that specializes in bulk sale transfers for companies with less than $10 million in gross sales. This helps ensure that the business is being delivered free and clear from all liens, and the transaction remains in compliance with all local and federal government entities.
Once all conditions in the purchase agreement and escrow instructions have been satisfied, the sale of your business will be declared unconditional.
Keystone Business Advisors will work to finalize the details required for the closing to take place on a specified date. We also assist in a transition plan with the objective of minimizing disruption and uncertainty for the employees and customers of the business.