Frequently Asked Questions
Q. Why do people want to be in business for themselves?
A. The United Sates of America was founded on Freedom, thus giving each of us the right and opportunity, among other things, to own a business; it can be the American Dream! Earning potential is limited only by you, rewards are tied to performance. You have the opportunity to work in any field you choose. There is independence in decision making; you control your own security and future. You can build an estate, create tax shelters and provide employment for family members, to mention a few reasons.
Q. Is this a good economic time to buy or start up a business?
A. A qualified ‘yes’. Downturns in business or recession cycles have been a part of our modern American economy for well over sixty years and will often expose poorly managed or marginal businesses, thus resulting in their closure and creating vacancies. Often times this will create new opportunities for buyers, who, in turn, will be able to find better locations, negotiate more favorable lease rates and terms, even finding equipment for little or no cost, giving them a stronger start to begin a business.
Additionally, businesses that come on the market for sale who have ‘deep roots’ of longevity and have survived through economic downturns, are considered to have less risk of failure, and afford the buyer a great opportunity for continued success.
Q. How can Your Biz Brokers help me?
A. In several ways. First, we begin with an interview process to determine type of business, geographic area, and price range you’re looking for; and most importantly, how you plan on financing your purchase. Your qualifications and experience are also important, along with a solid business plan. We are then able to direct you to current businesses that we have for sale that fit your criteria. Additionally, we can also approach businesses that are not for sale, but could potentially be, if we found the right buyer for them.
It should be noted, that in the event we introduce the buyer to one of our sellers, that under the seller’s listing agreement, we represent the seller not the buyer; however, we will assist the buyer though out the purchase process.
Q. What is a “Confidentiality Agreement” or ‘Non Disclosure Agreement” and why do I have to sign it?
A. It is a document that the buyer signs before the name and address of the business is disclosed or given out. The buyer agrees to keep all information about the Seller’s business, including the fact that it’s for sale, along with all records, financials and documents the buyer may see completely confidential. It’s important that the buyer respect the seller as to confidentiality, especially when the buyer visits the business as a customer, not ‘snooping around’ or asking questions of the employees. Questions may be asked of the owner after an official meeting has been set up
Q. What happens when I find a business I’m interested in buying?
A. Your Biz Brokers will be able to answer many of your questions immediately or will research them for you. Once that is completed, the next step is for the agent to prepare an offer from you that is reasonable and based on the price and terms you feel are appropriate. This offer will generally be subject to your approval of the actual financials and records supporting the figures that have been supplied to you. The main purpose of the offer is to see if the seller is going to accept it, reject it or make a counter offer. If the seller has a counter offer, you obviously have the decision to accepting it or rejecting it, and continuing to consider other businesses. If you and the seller agree on a purchase price and terms, the next step is for you to do your “due diligence.” The burden is on you, the buyer, no one else. You may choose to bring in other outside advisors or to do it on your own, the choice is yours. Once you have checked and approved those areas of concern, the closing documents can be prepared, and your purchase of the business can be successfully completed.