Get to know the steps to follow in the purchase of a business. Buying a business is a process that involves the involvement of various professionals.  The following is a typical sequence of events for the purchase of a business:

  1. The Buyer meets with the Broker in order to help him define the type of business that best suits him according to his tastes and preferences.
  2. The Buyer signs a Confidentiality Agreement, in order to protect the interests of the Sellers.
  3. The Broker gives the Buyer confidential information of the business(s) that best suits him. If no listed businesses are a suitable match, the broker will conduct a detailed search for a new listings.
  4. The Buyer, with the Broker, tour the businesses they have expressed an interest in.
  5. The Buyer makes his selection and purchase decision.
  6. The Buyer with the guidance of the Broker, structures a Purchase Offer, in which the conditions and contingencies to the purchase of the business are established.
  7. The Buyer deposits with the Broker in an escrow account the good faith down payment for the purchase of the business (normally $5,000).
  8. The Broker presents the Purchase Offer to the Seller, accompanied by a deposit as a gesture of seriousness of the offer.
  9. In case the Seller agrees to the offer, he accepts and signs the Purchase Offer contract.
  10. Within 72 hours of the sellers acceptance of the offer, an additional downpayment equaling 10% of the purchase price is tendered.
  11. A closing date is established and the representatives for each party are working on the closing documents.
  12. On the closing day, inventory will be taken, documents are signed, and the business is turned over to the Buyer.

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