Working with KKBA, or one of our affiliated firms to buy a business will dramatically increase your chances of completing a successful transaction. It is the shared mission of every KKBA professional to help you to realize your entrepreneurial dreams. The more you know about us, the more apparent it will become that KKBA should be your first and only choice to ensure a smooth business purchase process.
The Business Purchase Process Explained
- Non-Disclosure – Your broker will ask you to sign a non-disclosure or confidentiality agreement promising to maintain the confidential nature of all the information provided to you.
- Background Information – Your broker will ask you to provide some information about yourself, such as a resume and financial statement. The more we know about you, the more likely we can find a business you will like, the more information we have to provide to the seller, and the better the terms they will consider. All of which makes the process much more smooth.
- Review – Together, you and your broker will discuss and review various businesses and select one or more that meet your criteria and appeal to your interests.
- Introduction – We introduce you to the businesses you are interested in and then we discuss the important factors of each. You are given the addresses of the businesses in order for you to see the facility, pose as a customer, and check out the area.
- Meeting – A meeting is setup by your broker between you and the seller to allow you to ask questions you may have about how the business operates and to describe your qualifications to the seller.
- Offer to Purchase – Your broker will assist you in preparing a non-binding Letter of Intent on the business you like.
- An earnest money deposit is required with all Letter of Intent offers.
- Most offers are contingent upon your inspection of the books and records of the business and a lease assignment contingency that is satisfactory (in the event that the business facility is on a lease). The offer is not binding until you remove all contingencies.
- Present Offer – Your broker presents your offer to the seller.
- Acceptance – The seller accepts or rejects your offer. In most cases, the Seller will respond back with a counter offer (this is the negotiation phase of the deal).
- Mutual Acceptance – When you and seller agree to all terms and conditions of the sale, the offer becomes a Purchase and Sale Agreement.
- Due Diligence – You will meet with the seller to examine the financial records. Any questions you have are resolved at this time. Other contingencies to consider are landlord/lease assignment, financing, and verification of furniture, fixtures, and equipment.
- Contract Phase – We provide all documents to the settlement agent/attorney so they can prepare the closing documents. They make arrangements to assign any notes of equipment leases.
- Inventory – Arrangements are made for you and the seller to count and price the inventory (if required).
- Settlement – All parties meet to sign documents.