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Buying A Business
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Buying a business is an exciting and challenging task. To insure a successful outcome you need experience, knowledge, negotiation skills and a large pool of available businesses to choose from. Equally important are professional appraisal resources to assist in valuing the business so you don't overpay, and due diligence services to analyze the opportunity once your offer has been accepted. FBA brings this expertise together in our unified services and offers the highest levels of Intermediary Representation available. We work closely with you from beginning to end to make one of the most complex business decisions as easy and straightforward as possible.
- Terms You Should Understand
Please click on Terms for business sales terms you should familiarize yourself with.
- Initial Consultation
Once you complete our Buyer Forms, we will schedule a consultation to discuss your personal and financial needs. At this stage we either focus on your target acquisitions or conduct an extensive search for available businesses that meet your criteria. We also prepare a Strategic Acquisition Plan that is customized to your goals and objectives. We look at each client individually to insure your unique needs are met.
- Financial Qualifications
As part of the buying process we may collect basic financial data and help you pre-qualify with a lender if needed for your purchase. This makes you a stronger Buyer candidate when looking at businesses and prepares you to make an offer with a greater chance of acceptance. As a general rule, in order to secure owner financing or bank financing, at least 30% down is required. For example $100,000 down will buy a business around $333,000 while $1,500,000 will buy a business near the $5,000,000 mark. Through our negotiations, we do everything possible to help lower your down payment and conserve working capital to meet operating expenses and jumpstart your business venture. Our services make you attractive to Sellers by preparing a financial profile demonstrating your ability to buy the business.
- Customized Business Search
Using your unique criteria, we customize a search and gather listings from our firm as well as databases from cooperating intermediaries. This gives you a broad selection and streamlines your searching through a central, knowledgeable source. Timing is critical when searching for a desirable business, and Florida Business Advisors does the legwork for you in an efficient and expedient manner.
- 3,000 Florida Businesses For Sale
To search for businesses click on Businesses For Sale to search by County, Business Category, SIC Code, Selling Price, Down Payment, Net Income, Gross Sales and Keyword. Inventory is updated daily.
- Professional Networks
All of our businesses are centrally listed through the BBF and then custom listed through Biz Buy Sell, Business Broker Net, MergerPlace and other services. This creates the largest possible universe of sellers with more opportunities for you as a buyer to find your business of choice.
- Targeting a Specific Business or Industry?
We can also conduct an extensive specialized search for you defined by SIC code, income production, location, competitive situations, and growth parameters. We access and maintain proprietary databases of 332,207 businesses throughout Florida with annual revenues from $500,000 to $1 Billion dollars, plus we maintain private databases of potential sellers who have contacted us if the right buyer becomes available. We also conduct targeted campaigns to business owners to identify businesses not currently on the market. Then we present our buyers privately to these owners and negotiate the sale.
- Required Disclosures
Standard Confidentiality Disclosures and other documents insure the Seller that you are serious about their business as well as protect the rights of the parties involved. Once the Disclosure and other documents are signed we offer you summary details about the businesses selected. On occasion the names and exact locations are withheld until you meet with all parties involved. It is critical that the Seller of a business protect their income and employees from the damaging results of a breach of confidentiality. For a Confidentiality Disclosure and other forms, click on Forms.
- Visiting the Business
We arrange all showings for you and help you get answers to important questions about the business. Some Sellers prefer to conference call prior to actually visiting a business while others prefer an immediate visitation. Whatever the method used, we are here to help you.
- Preliminary Financial Review
Buyers like to see basic financial information before making an offer. This helps them verify the profitability of the business as well as decide on an appropriate offering price. Some Sellers have liberal amounts of financial material while others may have only tax returns and simple financial statements. In either case we work with Sellers and Brokers to get as much information as appropriate prior to writing an offer.
- Negotiating the Deal
Every deal is different and calls for negotiations based on the parties: their positions, circumstances, temperament and other factors. As a Buyer you want the best price without undervaluing the business, and want to show good faith and motivation when making the offer. Many deals fail during negotiations due to the lack of a skilled intermediary. We help you "get to yes" in the deal and make it a win-win for all parties.
- Setting the Offering Price
One of the most important factors in "getting to yes" is a fair offering price. Using our appraisal tools we help you determine what to offer and why it is a fair offer. If financing is involved it is equally important to offer a price that will be supported by the bank or SBA appraisal of the business. Failure to do this can cause an entire deal to implode even though the parties have agreed on the terms.
- Offer and Acceptance
Once an offer is made, the Seller either accepts the offer or counteroffers with modifications and amended terms. This process may continue until both Buyer and Seller agree on price, terms and other conditions and then fully sign and countersign the contract. This entire process may take several hours or several days depending on the parties. It is best to negotiate acceptance as quickly as possible in order to avoid other offers coming in that can jeopardize your offer. Once the Seller accepts an offer and it has been countersigned and delivered to all parties, it typically constitutes acceptance.
- Contract Review
Once the contract has been accepted, there is a provision for review and approval of form and language without changing the substantive terms. At the same time you are always given the option to have your attorney review the contract and make modifications prior to delivery of the initial offer, should you choose. Contracts are legal documents and you should check with legal counsel on any questions you may have.
- Due Diligence Period
Due diligence is a systematic examination and verification of the financial records, tax returns, bank statements, books and other key data about the business you are buying. Based on the size, type and financial records of the business, you may choose to conduct some of this yourself, use our due diligence services, or consult with a CPA. This is a time consuming process that requires significant skill. If a loan is involved, specialized reports such as AR and AP Aging, certified interim financials and other reports may be required that are outside the Buyer's scope of expertise. We can help with a list of items you need for due diligence and then you may choose the next step.
- Financing the Deal
Most business purchases require some type of financing, either seller financing, SBA financing, commercial lending or venture capital. Profitable business that are heavy in assets are usually attractive to lenders while businesses heavy in goodwill may be more difficult to finance. Much depends on the strength of the business: its earnings history, tax returns and future prospects. In any case, at least a 30% down payment and access to working capital are usually required. We give you lender contacts and help you prepare to meet with lenders to discuss the business. Then we will meet with you and the lender to discuss the opportunity and make sure the lender is fully apprised of the quality of the opportunity and your personal qualifications.
- Licenses and Leases
As we move nearer to closing, there are licensing, insurance and lease issues to clear. In addition to occupational licenses there may be special licenses or certifications necessary to operate a business. We assist with paperwork, licensing boards and educational requirements that may be necessary. Insurances are also necessary including business insurance and other types of coverage. Leases may be assigned or new leases negotiated with the landlord prior to closing. Typically, the Buyer must personally guarantee performance of a new lease and a separate credit check is usually required. These final details often take several weeks to complete.
- Getting Ready to Close
Once the lease negotiations are done, the due diligence completed and financing is in place, you are ready to close. The closing agent (usually an attorney) will prepare all the legal documents. We maintain a checklist of 33 Critical Items that should be reviewed prior to closing. We like to be sure all parties are communicating prior to closing so there are no last-minute surprises. Then you can expect a smooth closing where all details and documents are finalized.
- Closing the Deal
Once all documents have been signed and disbursements made, the transfer is complete! You are the new owner of a business and the seller has reached an important goal in their business life. Congratulations, the deal is done!
- Post-Closing and Development of Your Business
During the post-closing period, the seller is usually transitioning the business to the new owner as provided for in the contract. This is an excellent time to draw on the owner's expertise to help you grow your new business. We can also help you get started managing and operating your new business with consultations on staffing, marketing, sales and operations. We have assisted companies with as little as $500,000 in annual revenues to $1 Billion in managing and growing their businesses.
- The Perfect Business
Don't we all want the perfect business to buy? Excellent income, a stable industry with clean books and records and an easy-to-like owner to help us in the transition! Sure we do, but the reality is usually different. While there are many excellent opportunities, each business has unique issues to be addressed. Just like people, each business is different and somewhat imperfect. However, if you are willing to search for the right business, and then add your expertise and talents to your new venture, you can emerge with a new lifestyle, new ambitions and an enhanced income. You control your own destiny, and this is one of the most satisfying reasons to own and operate your own business.
- Our Turnkey Approach
Florida Business Advisors offers you a professional turnkey approach to buying a business. From the selection process to valuation and offering price, to negotiations, due diligence and closing, our staff and network of professionals are here to help.
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| Newsflash |
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Florida Business Advisors has more than 100 years of combined business expertise and $300,000,000 in sales transactions from its business consultants. We specialize in the sale of profitable businesses from numerous sectors including financial, service, manufacturing, contracting, distribution, technology, medical, retail and professional. We have helped business owners and corporations from $300,000 in annual revenue to $1 billion in achieving their goals. |
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Contacts
11345 53rd Street North
Clearwater FL 33760
Office: 727-712-1222
Fax: 727-581-9569
Email: info@floridabusinessadvisors.com
Memberships:
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Institute of
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Buying A Business 
