Our franchise consultant team will separate facts from feelings. A good franchise consultant will tell you when you shouldn’t be buying a business resale. Our franchise consultant team will do a thorough business valuation. We are actually better than most other business brokers, because of our accounting background. We can tell you what a good or bad deal looks like better than anyone.
Everyone on our team considers it their duty to look out for the best interest of our clients. We examine the business history and the potential for the business to make money with our buyer as the owner.
Everyone likes a good story and we are no different. We like to help people buy the business they love, or always wanted to own. We want to help people live the American dream. However, our first duty as a great franchise consultant team is to base any suggestions of the business facts.
Buying an existing business
Your franchise consultant will work with you to determine all the variables, risk, and potential behind buying an existing business. There are many pros and cons to buying an existing business and each situation is unique. In most cases, there is less risk in buying a business resale than starting a new business.
Buying an existing business through a business resale helps a business owner skip a lot of work and risk. Buying a business resale means you already have a customer base, trained employees, cash flow and profits. When you buy a business, you get to build on its history and reputation. This is one of the big advantage to starting a new business.
There are some drawbacks to buying an existing business. Starting a new business is generally cheaper than buying a business resale. Buying a business resale will cost more, because a lot of the hard work has been done. A lot of the risk has also been reduced.
Steps for buying a business resale:
- Letter of intent- The letter of intent to sell should clearly list the asking price and terms or conditions to buying a business resale.
- Start researching- When you find a business that you want to buy it is time to begin a complete and objective investigation. Our franchise consultant team are experts in this type of research.
- Non-disclosure agreement (NDA)- The NDA will protect the business owner, because it prevents the buyer from sharing the business info. The information the business owners shares is only to be used to make the decision on buying a business resale.
- Determine transferability- It is important to determine if all contracts, leases and business deals are transferable. Your franchise consultant will make sure that any vendor including the landlord are open to working with a new business owner.
- Financial review– It’s important to examine all the financial documents from the last three to five years. It is important to review the tax returns with the bank statements to determine the truth about the cash flow.
- Review all documents- It is important to review any and all documents that apply to the business. This includes sales records, employee files, vendor information and more.
- Business valuation- This a very important step in the buying a business resale process. It is crucial to get the value of the business correct. Our franchise consultant team excels here due to our background in accounting.
- Legal Help- It is important to have a lawyer review the legal documents of the business prior to purchase. A lawyer should also review any sales agreement for buying a business resale.
- Sales agreement- The sales agreement covers the purchase price, everything being bought and any terms or conditions.