Looking to buy a business?
We specialize in Florida Businesses. We answer the question: How to buy a business? Look at our 10 step process and Check out our search tool.
Finding the Right Business Starts with Finding Us!
If you’re looking for the right location to buy a business or franchise, look no further. You’ve come to the right place. There’s nowhere in the world quite like Florida to find a thriving business. With a year-round vacation climate, affluent population and constant influx of visitors, the conditions are ripe. Many business owners come to Florida to establish a lifestyle that many only dream of.
Navigating the waters between the idea phase and bringing your business to life can be tricky. Having Anchor Business Brokers on your side keeps your gliding stress-free into your new life rather than falling victim to any pitfalls along the way.
Contact us today to find out how we can help you find the right Florida business for your needs.
10 Steps to Buying a Business in Florida
Assess Your Position and Goals
How much do you want or need to earn or make yearly? Multiply that number by 2-3 and you will find the cost of your ideal business. And don’t worry—if you have 10-15% of that in the bank, you can usually get a Small Business Administration (SBA) loan to cover the difference.
What are your goals for the business? Are you looking for a turnkey operation to provide smooth and steady income to take you into your retirement? In search of a high-growth opportunity that is just waiting for a hard-working owner to push it to the next level? What you want to achieve and the level of involvement you wish to have will help you narrow down what type of business to consider.
We’ll work together to get the full picture of where you are now, how you got here and where you want to go. Establishing this foundation will help us guide you toward the businesses that best suit your needs. Not only will you have access to more businesses than you would on your own, but you can count on our decades of experience to find businesses that you may not have otherwise considered. Together we can open up a new world of possibilities.
Search for Businesses
After meeting with us, you will have a much better idea of the kinds of businesses that best suit your needs. You can compare lists of compatible businesses that we send to you against others you find through our online search to maximize possibilities. We help guide you through this process, answering any questions you may have along the way.
Much like a brainstorming session, this is the time to compile as many options as possible for consideration.
Now is the time to go through your list of possible businesses to weed out any that do not meet your criteria. Some topics to consider:
- Can you afford the business?
- Are you interested in the industry?
- Does it look like it will remain profitable?
- Are there any risk factors that stand out?
Take a closer look
Once you’ve found at least one suitable candidate, it’s time to dive deeper. You will need to sign a Non-Disclosure and Confidentiality Agreement in order to protect the business from disruptive actions. This includes untimely employee loss, competitor opportunism, and maneuvering on the part of landlords, bankers, or creditors.
Evaluate the business profile. This report will give you hard facts about the present state of the business. It will typically include a summary of financial data and facts. These may include lease information, employees, inventory lists, contracts with vendors or customers and other relevant information.
Meet the Seller
During this time, potential buyers and sellers customarily meet face to face. This is your opportunity to ask questions that may be critical to making your decision. Although not strictly required, in-person meetings give you the chance to look the seller in the eye and take in the subtle messages that convey his or her character.
If you are satisfied with the results of the meeting, you may also make a personal inspection of the premises before moving on to the next step.
Make a Realistic Purchase Offer
It may seem strange at first, but it is generally in your best interest to make your purchase offer before performing due diligence. This enables the seller to disclose more intimate details of the operation such as financial records. It also ensures that you have a deal in place before investing time, effort and money in due diligence. In the event that due diligence reveals unfavorable information, you can simply cancel or adjust your offer.
Anchor Business Brokers can advise you throughout the process and help facilitate your offer. We will present the purchase and sale agreement to the seller on your behalf, along with a deposit of good faith held in escrow to demonstrate your seriousness. It is recommended that your contract contain conditions to protect you. This includes being contingent on securing financing and the successful completion of Due Diligence. After we assist you with negotiations (if any), we will present you with your executed contingent purchase agreement.
We have a standard form contract that we can help you put together, although we strongly recommend having your attorney review it before we present your offer.
Your purchase contract will contain:
- Terms of the offer including price, down payment and financing (interest rate, loan period, etc.).
- Conditions including covenants not to compete, consulting agreements, training agreements, accounting and apportionment of work-in-progress, assumption of liability.
- Contingencies such as approval of books and records, equipment, inventory, assignment of leases or loans and any other items incorporated into the terms of the agreement.
A demonstration of your financial ability to buy the business. This may take the form of financial statements or other proof.
“Earnest Money” Deposit Check, typically ten percent (10%) of the purchase price.
Perform Due Diligence
Before proceeding any further, you will want to bring in your advisors. These may be attorneys, accountants, business appraisers and other professionals that can verify the accuracy of the seller’s financial documents. They can also ensure that there are no legal or financial obligations that you are not already aware of.
This is your opportunity to closely examine operations and finances to determine if it can support your plans for growth. You may find that you’ll need to invest further before it will meet your needs.
Your team will have a specified period of time (typically 5-15 days) to evaluate the business. The process includes reviewing the Seller’s books and records, inspecting the business premises, verifying the Seller’s representations and removing all contingencies.
If the business does not pass the due diligence process, you may choose to withdraw, modify or amend your purchase offer. If you choose to withdraw, the money you placed in escrow will be returned to you. Please be aware that the cost of the due diligence is non-refundable. Although costly and time-consuming, the due diligence process is an essential part of the buying process.
Secure Financing and Negotiate a Lease
Many businesses are bought with some form of financing. This may involve Small Business Administration (SBA) financing, a bank loan, Venture Capital financing, Angel (private investor) financing, and/or seller financing. Whatever avenue you choose to take, we will advise you on the pros and cons of your options and assist in locating the right lender.
This is also the time to make a deal for the physical premises of the business, secure utility transfers, merchant service accounts, perform inventory counts and make other last-minute preparations.
We will review guidelines for making the transition process as seamless as possible. This way, you can avoid any unnecessary disruptions to the business after you take control.
Proceed to Closing
Your acquisition will usually be completed with the signing of several documents and the payment of the balance of the purchase price. This should be done with an attorney present. At close you will be required to provide a cashier’s check or wire funds for the amount due. Cash is acceptable, but usually frowned upon.
Once the transaction has closed, you are ready to open the door to a new chapter of your life. Congratulations!! At this point, you will officially be in Business!!!