Tag: buy a company

Everything You Need to Know to Buy a Company

It’s no small decision to buy a company. If you’re an entrepreneur who’s looking for a new opportunity but don’t want to start a business from scratch, purchasing an established business is the way to go. 

While this approach allows you to skip some of the more time-consuming and costly parts of getting a successful business up and running, you’ll still have to navigate the process of finding a business to purchase and negotiating a deal that leaves both you and the owner satisfied.

As this process can be complicated, it’s important to learn what to expect ahead of time so that you’ll know what potential obstacles to watch out for. Read on for our step-by-step guide.

Start by learning more about yourself.

Before diving into the classified ads to see what’s available in your area, take some time to think about why you want to buy a company. Ask yourself questions like:

  • What experience, passion, and skills are you hoping to leverage in this new endeavor? 
  • What industries excite you, and why? 
  • What business types are you most comfortable with based on your professional history? 

Only once you’ve answered these questions should you move on to looking at businesses for sale.

Get to the bottom of why a business is for sale.

Once you’ve found a business that you would be interested in purchasing, it’s necessary to take a hard look at why it’s for sale. Of course, it’s completely normal for a business to go up for sale because its owner wants to retire or make a career change. However, it’s prudent to assume that there might be another reason for the owner’s departure and that this reason could also influence your ability to run the business successfully.

Whether the business plan is not conceptually sound, the location is out of the way for customers, or the brand is suffering from image issues, it’s possible that a change of ownership wouldn’t improve the trajectory of the business. On the other hand, the owner may be struggling with challenges that you’re well-suited to overcome due to your past experience and personal strengths.

That’s why it’s important to speak with the owner at length about any concerns you have. You can also reach out to current customers, employees, and neighboring businesses to get a fuller picture of what’s going on.

Do your due diligence.

The above research is just the beginning. Once you’ve decided you’re serious about buying a company, you’ll need to gather even more information of a legal and financial nature. In order to ensure this process is completed thoroughly and accurately, it’s best to partner with professionals, including an accountant, a business attorney, and a business broker, if you aren’t already working with one.

From licenses and permits to organizational paperwork, business financials, and leases, these professionals will help you review a range of documents to ensure you’re making a solid decision by moving forward with the purchase.

Prepare for price negotiations.

Tread lightly at this stage, as many deals start to unravel when buyers and sellers can’t come to an agreement about the value of a business. A business broker can be especially helpful with these negotiations, mediating when tensions run high and providing access to reliable business valuation services to facilitate an objective understanding of the business’s value.

In addition to agreeing upon a final purchase price, you and the seller must settle the details of the final sales agreement – including tangible and intangible assets, intellectual property, and customer lists – before you can finally call the business yours.

Overwhelmed? Get Expert Help to Buy a Company with Confidence

This is only a brief overview of the general steps you’ll need to take to buy a company. In fact, the process can be quite lengthy and complicated. If you’re a first-time buyer, it’s likely that you’re going to make some mistakes along the way. That is unless you have someone more experienced by your side.

A professional business broker can assist with the purchase process from start to finish, helping you figure out what type of business best suits your goals, assessing potential options, and negotiating on your behalf to get the best price possible. Rather than worrying about every detail, you can focus on the big picture and maintain confidence as you make important decisions about the future.

Learn how one of our local business brokers can help you buy a company today. Call Murphy Business at (888) 561-3243 for details.

 

Buy a Company with Confidence with Murphy Business

Murphy Business Brokers can help you find the perfect business.If you want to open a business, you don’t have to start from scratch in order to launch a successful enterprise. In fact, building a business from the ground up comes with a multitude of risks and a high level of uncertainty. Before you can even establish steady cash flow, you’ll have to put plenty of effort into marketing the business and cultivating a customer base. When you buy a company, you can avoid these disadvantages while enjoying the benefits of owning your own business.

If you buy a company through an experienced business brokerage firm, like Murphy Business, can save you time and energy. A business broker can also provide you with a greater level of confidence in your new endeavor. Our local brokers will act as your guide during the decision-making process, helping you make choices that reflect your goals every step of the way. In addition, we’ll assist you with sidestepping common pitfalls that could lead you to make a decision you’ll eventually regret.

How We’ll Help You Buy a Company

There are several steps that go into purchasing a business, and these steps can be quite complicated and time-consuming for first-timers. Having a business broker by your side will save you the stress of going it alone and ensure that you buy a business that is primed to succeed. Read on to learn more about how you can buy a company with confidence when you choose to work with Murphy Business.

Choosing the right business type

There’s no such thing as a “perfect” business. Like many things in life, it’s all in the eye of the beholder. The right business type for you may be the wrong choice for someone else. Until you know all of the options available to you, you won’t be able to make the best decision for your professional future. A business broker from Murphy Business can help you understand which business type will best match your skillset and previous experience. With our assistance, you’ll become more familiar with various industries and be more likely to select the right business for your goals.

Taking a closer look

Once you’ve chosen the business type you’re most interested in, we’ll help you narrow down existing businesses for sale in that field. One of the most important things our brokers do is prescreen businesses, which protects our clients from investing in especially risky ventures. Our system has a proven track record for doing due diligence on business valuations. When you work with us, you’ll know exactly what you’re buying and who you’re buying from.

Sealing the deal

Negotiating the final purchase contract is rarely a straightforward process. However, we can help make it less of a headache for both parties. We’ll represent you during negotiations, assist with writing contract terms that reflect your intentions, and find workarounds for any roadblocks that come up between you and the seller. We can also guide you in acquiring financing and help you avoid commitments that could lead to a cash shortage.

Making a smooth transition

You can count on us to pave the way for a smooth transition that enables you to put your best foot forward as a new business owner. First, we’ll help to negotiate a purchase agreement on the best terms possible. It’s crucial that both you and the owner feel good about what will happen to the business when they finally make their exit. In addition, ending things on a positive note will make it easier to have a successful start with employees, customers, and suppliers, who will all be key players in your daily operations.

We can also help lay the foundation for a smooth transition by writing training terms into your contract with the seller. Depending on the business type you’re purchasing, the necessary training period could range from a couple of weeks to several months. This period is often critical for maintaining consistent business operations during and after the handover.

Buying a company with confidence is all about having the expert support you need to make the best decisions for your personal situation. When you rely on one of our business brokers to be your guide as you choose a business type, evaluate your options, negotiate terms, and finally become a business owner, you’ll have access to reliable information that informs your decision-making process and instills you with confidence about the future.

Learn more about how you can buy a company with confidence today. Just call Murphy Business at (888) 561-3243 to connect with a business broker in your area.