Buyer's Frequently Asked Questions (FAQs)

What is Due Diligence?

Due Diligence is all about getting to know a business before you decide to buy it. It's like doing your homework before a big test. It means researching and analyzing the business to make sure it's exactly what you expect it to be.

Why should I buy an existing business instead of starting my own?

Great question! Buying an existing business has some clear advantages. First, it's like getting a head start. You're taking over a business that's already up and running, so you know it works. Plus, you get a location, staff, and you can start making money faster. It's a safer bet for many people.

Why should I use a Business Broker to buy a business?

Business Brokers are like your personal matchmakers for businesses. They can introduce you to a lot more options than you'd find on your own. The best part? Sellers usually pay the broker's fee, so it won't cost you extra. Brokers also help with negotiations and make sure everything goes smoothly.

Will I be able to get financing to buy a business?

Getting a bank loan for a business can be tricky, especially if you're new to that type of business. But don't worry, many sellers are willing to help with financing, making it easier for you to buy.

How do I make an offer on a business I want to purchase?

Your First Choice Business Sales Professional is your guide through this process. They'll help you step by step. We have special agreements that cover everything from simple details to tricky situations to make sure everyone's protected.

Do I need an attorney?

Having an attorney look at the paperwork is a good idea, and your First Choice Business Sales Professional may suggest it too. It's like having an expert check the fine print to make sure you're making the right decision.

How do Sellers come up with the price they are asking for their business?

If a Seller has a Business Broker, they use different methods to set the price. It could be based on how much money the business makes or a mix of income and assets. Brokers work to make sure it's a good deal for both you and the Seller.

Aren't most businesses for sale losing money?

Not at all! It's a common misconception that businesses are only sold when they're struggling. In reality, there are many reasons why businesses are put up for sale, and thriving businesses are often among them. Here are a few reasons why business owners decide to sell:

1. Capitalizing on Success: Some entrepreneurs decide to sell their businesses when they're doing exceptionally well. They've built a successful operation and believe it's the right time to cash in on their hard work and enjoy the fruits of their labor.
   
2. Seeking New Challenges: Business owners are often passionate individuals who enjoy the thrill of starting and growing a business. After taking a business as far as they can, they may decide to sell it to someone who can inject fresh ideas and energy to take it to the next level.
   
3. Change in Life Circumstances: Life is unpredictable, and personal circumstances can change. Business owners may need to relocate, deal with health issues, or address family matters, prompting them to sell their business.
   
4. Retirement: Many business owners plan for retirement and decide to sell their thriving businesses to secure their financial future and enjoy their golden years.
   
5. Partnership Changes: If a business has multiple owners, changes in the partnership structure can lead to a sale. New partners may have different goals or priorities, or existing partners may decide to go their separate ways.
   
6. Market Timing: Business owners sometimes sell when market conditions are favorable, even if their businesses are performing well. They recognize that economic cycles can impact the value of their business, and they want to make the most of a strong market.

So, don't assume that a business is struggling just because it's up for sale. It could be a fantastic opportunity waiting for you, whether you're looking to capitalize on success, embrace a new challenge, or take over a thriving enterprise and build upon its achievements.