Many business buyers we have spoken with have a difficult time in finding the right business to buy.  Most are not familiar with the business buying process.  Hopefully the information below will help you become one of the successful buyers!

Because of the downturn in the economy and corporate downsizings, there are many business buyers in the market now.  This means that you must be more diligent and pro-active in your search efforts to be effective.  You have a lot of competition from many buyers right now!  Read the beneficial information below.  Good luck in your search!

1.  Finding a good business to buy is a process that takes anywhere from 3 months to 2 years.  You need to get the word out to as many people as possible that you are looking! Call business brokers, CPAs, consultants, business attorneys, etc. and let them know you are in the market to buy!

2.  Search every Sunday in the business opportunity section in your local newspapers to see if any new businesses for sale have been added.  Act quickly by calling the listing agent or business owner immediately for more information.  Be persistent and consistent with all agents you come into contact with.

3.  Make sure you have an adequate down payment for the businesses you are searching for.  You will need anywhere from 20% to 40% for a down payment. Also check to see if the sellers you are talking with will take back a note – most will.

4.  Get pre-qualified for financing early in the process of buying.  This could make a difference very quickly since many of the better businesses for sale sell rather quickly.  You don’t want to be hunting around for financing while another "qualified" buyer gets the business you want!  Get your loan information in early and read the article about financing in this web site.  It is an eye opener and is a must read for all business buyers.

5.  Identify what types and sizes of businesses you are interested in before you start looking.  Also know what geographic areas you are willing to buy a business in.  Business brokers will want to know this information, and if you appear not sure, in most cases you won’t be taken as a serious business buyer, thus limiting your selection and chances of finding a good business to buy.

6.  If you find a business you like, put in an offer immediately since this effectively accomplishes several things.  First, it locks out other business buyers while you explore the business more thoroughly.  Second, it shows the seller you are serious enough to write an offer.  You would be surprised how many buyers don’t write an offer thinking they may insult the seller or that the seller may say no – you may just get a yes and a great deal just for presenting an offer – go for it!

7.  Make sure you do your due diligence (investigation of the business) after your offer is accepted.  Usually you get 10 days (this time period is negotiable) to verify that the information presented to you is correct.  Ask for and get 3 years of current business tax returns and financials and other important documents to verify the numbers and information that you received from the business broker or business owner.

8.  Selecting a professional escrow company to handle your escrow is a very important process.  Most business brokers want their favorite escrow company to handle the deal, but you as the buyer in the purchase agreement get to select the escrow company if you desire. Escrow companies for business sale transactions are very different than real estate escrows!