Buy a Business Process

Buy a Business Process

Please note that the following steps are done in collaboration with the client, the client’s financial/ tax advisors, and legal counsel as appropriate.

1. Kick-off Meeting – Establish Buyer Objectives
   1. Background Research with appropriate competitor models Identified, and players
   2. Meet and Greet
   3. Events to Date
   4. Gather and Prioritize Business Objectives as Success Criteria
   5. Next Steps
2. Review and Incorporate Feedback to Buyer Objectives
3. Offering Search
   1. Online Listings
   2. Exit Planning Institute Network — Nationwide
   3. Business Exit Institute Network – Nationwide
4. Initial Offering Qualification
   1. Initial Telephone Screening: For those who pass initial screen:
   2. Sign NDA
   3. Collect financial documentation
   4. Prepare business valuation using 3 methods
   5. Compare financial ratios to industry standards
   6. Check against industry buy/sell guidelines (e.g., key performance indicators of industry)
   7. Go or no go, first cut
5. Second Level Qualification
   1. Mini Due Diligence on entire business, basically a SWOT (Strengths Weaknesses Opportunities Threats) developed through interview(s) with seller
   2. Discussion with seller’s accountant/ bookkeeper
6. If acceptable for further investigation:
   1. Generate Letter of Intent (LOI)
   2. Submit LOI
   3. Negotiate LOI
7. If LOI terms agreed upon
   1. Conduct thorough Due Diligence
   2. Update SWOT
   3. Assess Risk
   4. Create Strategic Plan, capitalizing on company’s strengths, industry trends; and minimize risks.
8. Restructure Deal Terms based on Due Diligence findings.
9. Negotiate Deal Structure.
10. Close Deal
11. Transition Ownership.