Information For Buyers

"What we can do for you..."

Security
83% of Fortune 400 wealthiest Americans achieved their riches through business ownership.  A big advantage in buying an ongoing business is that you, as the new owner, have an immediate cash flow and an established customer base.  You do not have to build a business; you simply take over an existing, successful business with the present owner’s assistance.

Financing
We assist you in obtaining financing.  A large percentage of business purchases are financed by the sellers of the businesses.  Some advantages of seller financing include lower interest and down payment, collateralized by the business, longer term with no annual call, owner commitment, and right of offset.  If the owner does not finance, we can direct you to sources of outside financing.

Confidentiality
The sale of an ongoing business is very confidential for both the seller and the prospective buyer.  All inquiries are held in strict confidence.  Meetings are confidential, and our agents are available after hours and on weekends.

Things a buyer should know:

We are advocates of finding a business that you like and with which you feel comfortable.  You, like every other prospective buyer, have a vision of being your own boss and calling your own shots.  The three components of a successful business are location, product/service, and management.  We  evaluate each business and help sellers determine an asking price.  We will review the information in our marketing package with you to clarify what is being purchased, the cash flow, the debt service, and the living wage.

The Process 

The process of buying a business is as follows:

• Evaluate the basic information on alternative businesses that sound interesting to you.
      

• Schedule an appointment through Pat Jones Business Brokers to meet with the Seller, asking from general to probing questions on anything and everything, except actual price negotiations.  This will enable you to see if it is a fit for you and improvements you think would be needed.
    

• Do your evaluation, based on the information provided to you by the seller and Pat Jones Business Brokers.  Other advisors with whom you may wish to consult are attorneys and accountants.
    

• Make a written offer through us, assuming that all of the information you have been provided is correct, but include contingencies, which allow you to confirm such information. 
    

• Once a sales price is agreed upon, make a closer investigation of the business through due diligence, confirming to your satisfaction the validity of your offer.
      

• It is usually advantageous to both the seller and buyer to have documents prepared by an escrow attorney, based upon the agreement signed by the buyer and seller.  Both parties may then have the documents reviewed by their own attorneys, if they desire.  You will decide on your legal entity before closing.  We will assist you through the entire process.
      

• Close the transaction, and begin your first day as the owner of your own business.  The seller will assist in an orderly transition.
         

You are part of the American Dream
You and your family own your own business!  

Top Tips for Buying the Right Business Right

1. Buy a business you like.  Although profitability is important, you will risk making a terrible mistake if you do not buy a business that you like.  Often, people who buy hastily without considering personal satisfaction later sell their businesses at a loss.  Will you be proud to own the business?  If you are not sure, do not buy that type of business.
      
2. Be flexible.  We advise our clients to be open to all sorts of businesses.  First, decide if there are any categories you do not desire to consider; then focus on the remaining categories.
        
3. Investigate the business.  Once the owner has accepted your offer, the real work begins.  Verify cash flow and identify any hidden problems.  If you see red flags in either of these areas, change or terminate your offer.  There should be contingencies in your offer that allow for this.  We will assist you through the entire process.
     
4. Make an offer before you have seen all of the financial and other business records of the business.  It is simply not possible to know everything about a business before you make the initial offer.  The offer does not commit you to the business, but it does let the seller know you are serious.

   
THE 90% RULE:  FACTS ABOUT BUYERS

• 90% of all buyers are first-time buyers.  In other words, they have never been in business before.
• 90% of all buyers will finance the purchase of their business.
• 90% of all buyers do not know what kind of business they want or best serves their needs.
• 90% of all buyers are terrified and/or uneducated in the business buying process.
• 90% of all sales will be financed by the seller.
• 90% (or more) will not buy the business that was advertised or the one that they called about.

Advantages of Buying an Existing Business

• Actual results rather than pro-forma.

• Immediate cash flow.

• Trained employees in place.

• Established suppliers and credit.

• Established customers and referral business.

• Existing licenses and permits.

• Training by the seller.

• The availability of owner financing.

Interested in a business we have listed on our website?  Click here to contact us!