image16

Services To Buyer

   

Services for Buyers

The Advantages to Buying an Existing Business:

All too often, new owners jump blindly into a business venture, overwhelmed by the tremendous workload of starting a business from scratch. In fact, a government survey shows that 60% of new business start-ups fail within the first three years. On the other hand, an established business that is purchased by a new owner shows a minimal failure rate.

A big advantage in buying an ongoing business is that you, as the new owner, have an immediate cash flow and an established customer base. Furthermore, you are taking advantage of the proven track record, immediate cash flow, trained employees, established customers and suppliers, credit lines, and an existing lease. You do not have to build a business; you simply take over an existing, successful business often with the present owner's assistance. In many cases, the seller provides the financing you need to buy the business. 

Pro Level Business can help you!

Owning your own business is the "American dream". The Pro Level Business process takes the mystery and confusion out of buying a business and will help you find the best business to meet your business ownership goals. If the time is right and you want to go into business for yourself, Pro Level Business Advisors is ready to work with you to help you realize your business ownership dreams.

Have you considered a Franchise?

Franchises are an extremely popular option because they offer the benefits of a proven success formula, and many require less money to get started. 

Typically, franchisees working together under one business system and one trade name, with group advertising and buying power, have advantages over individual business owners. Franchises have the highest success rate of new businesses. Over 95% are in business after five years because they come with training, on-going support and time-proven success formulas. Feel free to visit our Franchise section for more detail. 

Pro Level Business is ready to assist you with all buying opportunities!

Our services are FREE to all our prospective buyers if you are calling to inquire about any of our listings. You can also register to join our Premium Services for the Buyers. The fees charged are based on type of package you select. Our Targeted Acquisition Program (T.A.P) services are designed to find your ideal business at the right location, with the economic and financial trends you are looking for.

Buying a Business with Pro Level Business Advisors:

This guide will give you some basic information about the buying process and what to expect when buying a business. We will also show you how PRO LEVEL BUSINESS brokers will guide you through this exciting process. There is no charge to you for this service, when you call to inquire about our listings. 

Getting started and your first meeting with Pro Level Business

At our first meeting we will clarify your goals, interests, income requirements, investment level, and time frame for getting into business. We will explore businesses that meet your criteria. We encourage you to think about some of these questions before we meet.

How much money do you have to put down on this business? Availability of liquid money is crucial. Generally, you should expect to make a down payment equal to the cash flow of the business. SBA financing requires a minimum of 20% down that can be obtained within 7 business days. If your money is in real estate and not very liquid, you will need to make that money liquid before we start showing you businesses. Be sure to leave enough money in the bank for working capital and contingencies. A basic financial statement will help us determine your purchasing power.

What types of businesses interest you? As a new business owner, you will want to make sure you buy a business that you like, that you can manage, and that gives you and your family the income you need. If you are going to work hard, make sure you enjoy what you do.

When do you want to buy? The broker who is assigned to you will need to know if you are going to buy right away or just thinking of buying a similar business in the future. In order to go through the rest of the process we will need to know that you are ready to make a decision once you find the business you like.

Are you interested in buying a franchise? Pro Level Business works with a diversified group of franchises to help you find the franchise that matches your criteria. Be sure to let your Pro Level Business broker know if you are interested in a franchise.

Your subsequent meetings with your Pro Level Business broker

Now that you have some basic idea of what you want and what you will put down, your PRO LEVEL BUSINESS Broker can educate and guide you through the business buying process.

Confidentiality - Unlike the sale of real estate, the sale of an on-going business is very confidential for both the seller and the prospective buyer. To ensure confidentiality for all parties, we require a Confidentiality Agreement to be signed. A breach of confidentiality may cause employees to leave, competitors to use it to their advantage, customers to shop somewhere else or suppliers to change terms and conditions. Meetings and information shared or observed are also to be held strictly confidential. Pro Level Business has a fiduciary responsibility to our sellers to only show businesses to qualified buyers who will abide by the confidentiality guidelines.

Buyer profile - The next process is your profile. This information will show how much you have to put down, where your funding is coming from, and your general profile as a buyer. You need to be financially qualified before we will introduce you to the seller. It also helps us find a business that matches what you are looking for.

The education - When you meet the Pro Level Business broker in our office, we take you through the Business Acquisition Process to explain the steps involved in buying a business as well as pricing, terms, cash flow, what to expect, and things to consider making the right decision.

Showing you the businesses

Review - You will review the information on the company or companies for sale. Check out their websites. Make a list of unanswered questions. Try to picture yourself growing this business.

Viewing a business - Now you are ready to view the business. There are two ways you will do this: If the business is open to the public, we recommend that you drop by - unannounced - to get the same treatment/impression that a customer would get. Otherwise, we will make an appointment with the owner for businesses that do not normally have people walking through. At this point, you are not interacting with the business owner or the employees. You need to be able to picture yourself in the business before you take the next step. 

Meeting between Seller, Buyer, and Pro Level Business - If there is genuine interest in the company, you need to sit down face-to-face with the seller. The Seller-Buyer meeting is designed to let the two principals get to know each other and learn about the business in general. This is typically held at the agent's office or after hours at the seller's place of business. This is the time to ask general or detailed questions on anything and everything about the business, but not the time to begin negotiations on price and terms.

Preliminary Evaluation - It is now time to review the information you've received in greater detail. You may want to do your own projections of earnings for the next three years based on the history of the company and your anticipated improvements. You may choose to do some research into the general industry if you are unfamiliar with it. Make a list of all the changes you would make if you were managing this business.

Getting financial and legal help - Financing is an important part of your evaluation process. Many businesses sell with some seller financing. Owner financing shows the owner believes in the business and "likes and trusts" you enough to lend you money. Normally you will put down 30% to 50% on the business. Otherwise, PRO LEVEL BUSINESS has many lenders that can work with you to get your acquisition financed. Please review our Financing section for more detail. After you have found a business you like, we recommend you consult an accountant and an attorney as well as a business mentor or family member who has related experience. ADVISORS advise; they do not make your decisions.

The Purchase offer process

Price of the business: - How do you determine the right price for a business? There are number of formulas, rules of thumb, and financial calculations that analysts use to determine theoretical value. The "True Owner's Cash Flow" is the most critical. The cash flow of the business must do three things: 1) maintain operations 2) make the payments on the loan and 3) provide you and your family the lifestyle you want. If you can buy a business for the amount you have to put down and still earn the desired profit, then that is what the business is worth to you. Price and terms of the agreement are important, but the real measure is, are you comfortable? The purchase offer - Pro Level Business will assist you in preparing a written offer with all the necessary forms. You will put in the offering price, terms, and contingencies to make a "Buyer Friendly" and safe OFFER. You will also need to be prepared to attach an earnest money check with the offer which is a small fraction of the down payment. Agree on price and terms - Pro Level Business Broker will then take the signed offer to the Seller. If the Seller accepts the offer, you proceed through Due Diligence and remove your contingencies as soon as they as answered to your satisfaction. Three of the most common contingencies are a contingency upon approval of financials, a contingency upon assignment or transfer of the lease, and a contingency upon obtaining financing. Your offer may often receive a counter offer. This document may go from seller to buyer several times until a price is agreed upon. Due diligence - This is the time to look closely at the accounting records of the company, and to inspect the facility, equipment and inventory to insure that your assumptions are valid. Documents prepared for closing - You will receive a checklist from Pro Level Business that lists what to do to prepare for closing. With an agreement, Due Diligence completed, and contingencies removed, a transaction attorney prepares the legal documents for approval prior to close. Typically the buyer and seller share the closing expenses. Close and celebrate - The closing usually takes place within 4 to 6 weeks after an agreement is made. The seller will be available to assist in the transition of the business.


Articles – Good topics for articles include anything related to your company – recent changes to operations, the latest company softball game – or the industry you’re in. General business trends (think national and even international) are great article fodder, too.


Mission statements – You can tell a lot about a company by its mission statement. Don’t have one? Now might be a good time to create one and post it here. A good mission statement tells you what drives a company to do what it does.


Company policies – Are there company policies that are particularly important to your business? Perhaps your unlimited paternity/maternity leave policy has endeared you to employees across the company. This is a good place to talk about that.


Executive profiles – A company is only as strong as its executive leadership. This is a good place to show off who’s occupying the corner offices. Write a nice bio about each executive that includes what they do, how long they’ve been at it, and what got them to where they are.

Learn More

 

Showing you the businesses

Review - You will review the information on the company or companies for sale. Check out their websites. Make a list of unanswered questions. Try to picture yourself growing this business.

Viewing a business - Now you are ready to view the business. There are two ways you will do this: If the business is open to the public, we recommend that you drop by - unannounced - to get the same treatment/impression that a customer would get. Otherwise, we will make an appointment with the owner for businesses that do not normally have people walking through. At this point, you are not interacting with the business owner or the employees. You need to be able to picture yourself in the business before you take the next step. 

Meeting between Seller, Buyer, and Pro Level Business - If there is genuine interest in the company, you need to sit down face-to-face with the seller. The Seller-Buyer meeting is designed to let the two principals get to know each other and learn about the business in general. This is typically held at the agent's office or after hours at the seller's place of business. This is the time to ask general or detailed questions on anything and everything about the business, but not the time to begin negotiations on price and terms.

Preliminary Evaluation - It is now time to review the information you've received in greater detail. You may want to do your own projections of earnings for the next three years based on the history of the company and your anticipated improvements. You may choose to do some research into the general industry if you are unfamiliar with it. Make a list of all the changes you would make if you were managing this business.

Getting financial and legal help - Financing is an important part of your evaluation process. Many businesses sell with some seller financing. Owner financing shows the owner believes in the business and "likes and trusts" you enough to lend you money. Normally you will put down 30% to 50% on the business. Otherwise, PRO LEVEL BUSINESS has many lenders that can work with you to get your acquisition financed. Please review our Financing section for more detail. After you have found a business you like, we recommend you consult an accountant and an attorney as well as a business mentor or family member who has related experience. ADVISORS advise; they do not make your decisions.

The Purchase offer process

Price of the business: - How do you determine the right price for a business? There are number of formulas, rules of thumb, and financial calculations that analysts use to determine theoretical value. The "True Owner's Cash Flow" is the most critical. The cash flow of the business must do three things: 1) maintain operations 2) make the payments on the loan and 3) provide you and your family the lifestyle you want. If you can buy a business for the amount you have to put down and still earn the desired profit, then that is what the business is worth to you. Price and terms of the agreement are important, but the real measure is, are you comfortable? The purchase offer - Pro Level Business will assist you in preparing a written offer with all the necessary forms. You will put in the offering price, terms, and contingencies to make a "Buyer Friendly" and safe OFFER. You will also need to be prepared to attach an earnest money check with the offer which is a small fraction of the down payment. Agree on price and terms - Pro Level Business Broker will then take the signed offer to the Seller. If the Seller accepts the offer, you proceed through Due Diligence and remove your contingencies as soon as they as answered to your satisfaction. Three of the most common contingencies are a contingency upon approval of financials, a contingency upon assignment or transfer of the lease, and a contingency upon obtaining financing. Your offer may often receive a counter offer. This document may go from seller to buyer several times until a price is agreed upon. Due diligence - This is the time to look closely at the accounting records of the company, and to inspect the facility, equipment and inventory to insure that your assumptions are valid. Documents prepared for closing - You will receive a checklist from Pro Level Business that lists what to do to prepare for closing. With an agreement, Due Diligence completed, and contingencies removed, a transaction attorney prepares the legal documents for approval prior to close. Typically the buyer and seller share the closing expenses. Close and celebrate - The closing usually takes place within 4 to 6 weeks after an agreement is made. The seller will be available to assist in the transition of the business.

Articles – Good topics for articles include anything related to your company – recent changes to operations, the latest company softball game – or the industry you’re in. General business trends (think national and even international) are great article fodder, too.

Mission statements – You can tell a lot about a company by its mission statement. Don’t have one? Now might be a good time to create one and post it here. A good mission statement tells you what drives a company to do what it does.

Company policies – Are there company policies that are particularly important to your business? Perhaps your unlimited paternity/maternity leave policy has endeared you to employees across the company. This is a good place to talk about that.

Executive profiles – A company is only as strong as its executive leadership. This is a good place to show off who’s occupying the corner offices. Write a nice bio about each executive that includes what they do, how long they’ve been at it, and what got them to where they are.

Business's For Sale