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WHAT
YOU NEED TO KNOW ABOUT BUYING A BUSINESS
INTERVIEW--Initial Phone Call--You make an initial phone
call to Stenton Leigh Business Resources, Inc. (SLBR)
inquiring about purchasing a business. During this phone
call, a time is arranged for you to come to our office
and speak personally with one of our associates.
Background Information--You will provide SLBR with
personal background information including a personal
financial statement and resume. This information will be
maintained in strict confidence. We preview various
types of businesses, selecting from the fields that fit
your experience and interests and that are affordable to
you.
Non-Disclosure--You sign an agreement to maintain
absolute confidentiality regarding any information SLBR
will share with you regarding the businesses, and you
will be provided with a report containing confidential
financial and other information relating to the
businesses.
Meetings and Site Visits--SLBR will set up an
appointment for you to meet the owner of the business.
At this time you may ask the Seller specific questions
you may have about the business. This appointment is
usually scheduled for after business hours or initially
away from the business. The first meeting may or may not
include a tour of the business.
OFFER--Writing the Offer--With our assistance you will
submit an offer to purchase, together with an Earnest
Money deposit. Unless waived by you, this offer will be
contingent upon certain items including your inspection
of the business's financial records, condition of
equipment, obtaining financing, lease arrangements, etc.
This offer is not binding until all contingencies are
removed in writing by you. Prior to signing the Purchase
Agreement you may wish to have it prepared and reviewed
by your attorney.
Presentation--SLBR will present your offer to the
Seller. We give the Seller background information about
you and your previous experience. The Seller will either
accept, reject, or counter your offer. SLBR will notify
you of the Seller's response. At this point, you may
either accept, reject or counter the Seller's offer.
Mutual Acceptance--When both parties agree to all the
terms and conditions of the sale and sign all amendments
and counteroffers, the offer then becomes a contract.
(At this point there may be contingencies or conditions
that still need to be satisfied prior to closing.) Your
Earnest Money will be deposited in an escrow account
with the closing attorney.
ESCROW & CLOSING--Closing Attorney--An experienced
closing attorney acceptable to both parties will be
selected and SLBR will provide the closing attorney with
copies of all documents related to the sale.
Inspection & Due Diligence--You, and your accountant if
desired, meet with the Seller and inspect the financial
records of the business usually off site of the
business. You will also inspect the equipment, fixtures,
etc., to satisfy yourself of their condition prior to
closing.
Lease--Arrangements are made with the lesser regarding
assignment of existing leased premises or drafting a new
lease effective at closing.
Contingency Removal--As you work your way though the
process, existing contingencies in the Purchase
Agreement are removed. Once all the contingencies are
removed it becomes a binding agreement and the closing
date is set to sign the closing documents at the escrow
attorney's office.
Inventory--Arrangements are made for you and the Seller
to take inventory, as it applies to validating the
inventory numbers or providing additional renumeration
to the seller.
The
Closing--Prior to closing, all parties receive
draft-closing documents for review. On closing day, all
parties meet at the appointed attorney's office and the
documents are signed.
Now the transition and
training begins!
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