For Business Buyers

The first step in buying a business is evaluating your skills, commitment to owning your own business and your financial capabilities. An advantage of buying an existing business as opposed to starting a new one is that future performance is more predictable – and often it is a more cost-effective.  You may want to look for a good business that you can improve upon – and make it a great business. If you are indeed ready, willing and able, the next step is finding the right business opportunity for you.

The best way to find the right business opportunity for you is to work with a professional NYABB business broker. Business brokers list businesses like real estate brokers list properties. Most professional business brokers are indeed licensed real estate brokers as well, since businesses are sometimes sold along with associated real property. An NYABB broker has access to listings of other NYABB members as well as those listed by their office. This means that you have more choices working with an NYABB broker. NYABB brokers also subscribe to a Code of Ethics.

The broker will learn about you and what you are looking for and select businesses to show you that fit your skills, aptitudes and financial capabilities. A completed Personal Financial Statement will help the broker find businesses that you are likely to be able to afford. You will first look at “blind profiles” that describe the businesses without specifically identifying them. If a business interests you, a Buyer Confidentiality Agreement will be required to make sure you agree to keep confidential the identity of the business for sale and financial and other information you receive regarding the business. You may only share this information with your business advisors who assist you with evaluating the opportunity and you are responsible for their keeping the information confidential.

Typically, after a confidentiality agreement is signed you will receive a “confidential memorandum” providing more detailed information regarding the business, including financials, descriptions, location and identity. If this information meets your approval, a showing will be arranged where you will have an opportunity to see the business and meet the owner. Since many small and medium sized businesses sell with some owner financing, the owner will also be interested in making sure that you are a qualified buyer.

When you find a business that you want to buy, your broker or an attorney will help you prepare an offer to purchase. The offer to purchase may have contingencies - such as a due diligence clause that gives you an opportunity to review the information and financials to ascertain their accuracy. When all the contingencies are removed, the closing of the sale can take place, usually at the seller’s attorney’s office.

Your NYABB broker guides this process and is involved in the negotiations, the communications between the seller and the buyer through the due diligence process and works with the Attorneys, CPAs and other parties who are involved in the transaction to successfully close the sale.