Accelerating the Business Buying Process: Steps for Buyers

When it comes to buying a business, expediting the process can be advantageous for both buyers and sellers. If you're fully committed to purchasing a business and want to streamline the process, consider taking the following steps:

1. Prepare a Comprehensive Resume:

• Highlight Relevant Experience: Create a well-structured resume that emphasizes your relevant professional background, skills, and experience. This document can help sellers gain confidence in your ability to successfully manage the business. You should also update your LinkedIn or personal website with current information so brokers and sellers can see the real you.

2. Assemble Personal Financial Documentation:

• Proof of Financial Capability: Gather documents that demonstrate your financial capability to buy the business. This may include bank statements, investment portfolios, and any other financial assets.

• Creditworthiness: Be prepared to share your credit report or credit score, as this can be a factor in securing financing for the purchase wether it be with a bank or seller note.

3. Select Key Advisors:

• Transactional Attorney: Identify an attorney who specializes in business transactions. Having the right attorney ready can expedite the legal aspects of the deal. Ask your broker what attorneys he recommends as he will have in his networks a few which have a proven track record of success.

• Accountant: Choose an accountant experienced in business acquisitions. They can assist in financial due diligence and ensure the transaction aligns with your financial goals.

4. Secure Financing Options:

• Lender Contacts: Research and establish relationships with banks or lenders willing to provide financing for the business purchase. Having pre-approved financing (buyer pre-qual letter) can make your offer more attractive to sellers and shows you have been proactive.

• Proof of Funds: Prepare documentation showing proof of available funds, whether from personal savings, loans, investment accounts or investor committed capital.

5. Conduct Thorough Market Research:

• Market Insights: Familiarize yourself with the market in which the business operates. Understand industry trends, competition, and potential growth opportunities. You will also want to be aware of any Federal, State or Local licensing or possible regulation in the industry.

• Business Valuation: Be well-informed about the valuation of the business and industry. Most businesses sell based on a multiple of SDE or EBITDA which will fluctuate based on industry, performance and risk. Know the price range you're willing to pay based on a thorough assessment of the business's financials.

6. Express Commitment and Intent:

• Communication: Clearly communicate your commitment to buying the business and your sincere intent to move forward with the purchase. Sellers appreciate buyers who are serious and decisive.

7. Be Responsive and Efficient:

• Timely Responses: Respond promptly to seller inquiries, requests for information, and document submissions. Timeliness can significantly accelerate the negotiation and due diligence process plus you want to avoid the very real possibility of burn-out. If either party starts to get deal fatigue, the deal could become at risk.

8. Build a Strong Relationship:

• Establish Rapport: Foster a positive relationship with the seller. Building trust and rapport can not only lead to smoother negotiations and a faster transaction but is one of the most overlooked key components to getting a deal done. Almost all deals where the trust falls apart, so will the deal.

  
  

9. Due Diligence Preparation:

• Due Diligence Checklist: Create a due diligence checklist to systematically review the business's financials, contracts, and operations. Having a structured approach can expedite this crucial phase. Share your checklist with your accountant, lawyer and broker to make sure it has the appropriate items for the deal type and size. Sending an irrelevant list pulled off google can make the seller concerned about your knowledge of the business and commitment to the deal.

By proactively taking these steps with Sam Curcio, who offers a wide range of businesses for sale in New York, you can make the business buying process more efficient and demonstrate your commitment to the seller. Being well-prepared and organized can help you secure the business you desire in a timely manner while minimizing potential delays.