Buy a Business in Colorado or Wyoming
Getting Started: We’re here to take you beyond the internet search
Buying a business is quite often a once-in-a-lifetime event. If you haven’t done this before, you may need to get some bearings. An internet search will acquaint you with information to get you up to speed with the process. And you can do some virtual tire kicking of businesses that are listed.
Stepping Into the Buying Process
Making the Process Easy
If this is new to you, it’s easy to get confused and frustrated. That’s where our help is invaluable. We know the process and help you step into it in a way you can keep focused and become knowledgeable of each step as we’re working together.
Developing a Relationship
The first thing we want to do is become well acquainted with you. Our questions may seem irrelevant so soon in the process, yet you’re seeking a life-changing opportunity and we need to know up front all the information that will help us make a good fit between you and the seller. We’ll ask you how much time you can devote to this work to find a business. We need to know your financial resources, so we know we’re introducing the seller to a ready, willing and able buyer.
What do you WANT?
Once you become familiar with our listings, we’ll help you assess how they fit with your business criteria and resources.
What’s the Best Fit?
Once you determine the listings that interest you, we move to the next level where we show you the necessary disclosure of confidential information relevant to the purchase or sale of any business.
The next level is one of mutual trust and obligation between the prospective Buyer, our company and the Seller(s) of the business(es) of interest. Confidentiality when buying a business protects the prospective Buyer from having anyone such as an employer, employees, or the competition discover the proposed acquisition prematurely.
It also protects the Seller against unnecessary problems with customers, employees, vendors, competitors, landlords, bankers, creditors, etc. As a result, all prospective Buyers are required to sign a Non-Disclosure and Confidentiality Agreement before receiving sensitive confidential information.
Getting the Facts?
The Business Profile provides information the buyer can review and evaluate to determine whether this business is a suitable fit.
It consists of a detailed description of this business opportunity. A typical Business Profile contains a detailed description of the business, a summary of financial data and additional business facts such as lease information, number of employees, inventories, pending and operative contracts with vendors and customers and other pertinent information. Once the buyer has a full understanding of the business, we work together to assess the opportunities for ongoing business success.
Face Time
Once the Business Profile has been thoroughly examined, and determined that there is a potential fit, ideally the buyer will sit with the seller to get further insights into the operations of the business.
Making An Offer
After meeting the business owner and touring the business, the next step is to present an offer of purchase for the business. Making the offer is not, however, the final step. In fact, it should be viewed as the first of several steps, each of which bring the Buyer and Seller closer to completing the transaction.
The Offer: Terms, Conditions & Contingencies An Offer to Purchase will consist of the following.
- Terms of the offer including price, down payment and financing (interest rate, loan period, etc.).
- Conditions including covenants not to compete, consulting agreements, training agreements, accounting and apportionment of work-in-progress, assumption of liability.
- Contingencies such as approval of books and records, equipment, inventory, assignment of leases or loans and any other items incorporated into the terms of the agreement.
- The Financial statement of the prospective Buyer.
- The Credit Report of the prospective Buyer (paid for by the prospective Buyer).
- “Earnest Money” Deposit Check for ten(10%) percent of the offered price.
The prospective Buyer and its advisors, attorneys, accountants, business appraisers and other professionals will have a specified period of time to complete a thorough review of the Seller’s books and records, inspect the business premises and take other appropriate steps to verify the Seller’s representations and remove all contingencies (typically 5-10 days). The prospective Buyer and his advisors must utilize due diligence in completing their review of Seller’s business in a timely manner. When the due diligence process is completed and all contingencies are removed, the contract becomes binding. Should the business fail to pass due diligence review, the prospective Buyer may withdraw, modify or amend the Purchase Offer. The Due diligence procedure is costly and time-consuming. It is only initiated after the respective Buyer and Seller have reached an agreement on price and terms.
Most business purchase transactions require some form of financing. We work with our Buyers to secure the appropriate financing. This may involve Seller's financing, bank loan, Venture Capital financing, Angel’s financing (private investor), SBA financing and funds obtained through other financing resources. Regardless your financing requirements, we will provide guidance and assistance in locating right lender.
Your business purchase will be handled by an independent escrow company. Typically, an escrow is opened with the deposit of the Buyer’s earnest money down payment, generally within three (3) to five (5) days after all contingencies have been removed or satisfied. The average escrow will close in one (1) to four (4) weeks if there are no recorded liens against the business. A Cashier’s check will be required for the amount due at closing of escrow.
The escrow has closed, and the big day has arrived. The former prospective Buyer is now owner of the business. A new adventure is at hand. You are now in control of your own destiny.
When you work with us, we will guide you along the way and help make your transition to business owner stress free and simple. So, now is the time to go to our "Businesses For Sale Listings" section and get started on your search for your part of the American dream.
Please contact us to discuss how I can be or service to you.