Buy a Business

Whether you are a first time business owner or have prior experience owning a business, it is the goal of Momentum Business Brokers to understand your specific purpose for pursuing the opportunity and help select a business that meets your individual criteria. At Momentum Business Brokers, we offer our clients a high level of professionalism. There is never a charge for our services should you choose to use our company to purchase a business.

Once you have determined you are ready to own your own business, contact Momentum Business Brokers to schedule a consultation with one of our experts. During the consultation appointment you will be asked a series of questions in order to help your broker understand what type of business you are looking for so they can find the right opportunity for you.

Three important things to remember during the process is to be honest with your broker, to know your budget, and to be realistic. Some business owners will offer terms that allow you to leverage the money you have to buy a larger business for greater income opportunities. Often times sellers will not disclose confidential details of the transaction without the confidence of knowing you are in the position to complete the transaction, so please be prepared to provide proof of funds when asked.

Confidentiality is important to the process so you may be required to sign a confidentiality agreement commonly referred to as a Non-disclosure Agreement or NDA. This protects the seller from buyers taking their information and starting a competing business using that confidential information or disclosing the information to a competitor. Momentum Business Brokers is required by the seller to have this agreement signed before providing confidential details about the business.

Once interest is determined in a particular business, your broker will arrange a meeting to review the business and other details with the seller. These meetings often take place before or after the businesses hours of operation.

Once you have met with the seller, you will need to decide if you are ready to proceed to the next step in the purchasing process. If all financials and records have not been made available to you, you may still submit an offer and request those items you would like to see. At this time the items will be presented to you and your team of advisers. You may have already seen the financials and are prepared to make an offer with no further information needed. This period is referred to as the “due diligence period.”

Agreements are designed to protect ALL parties involved in the transaction. These agreements cover every aspect of the transaction from simple things like the assignment of the lease, so that you are able to take over the business location, to more complicated issues such as employee negotiations. You will be asked to give an Earnest Money Deposit, typically in the amount of 10%. This check will not be deposited with the third party closing entity.

Your broker will present your offer to the seller. If accepted by the seller, you will then move into the “due diligence” phase where you will have a chance to thoroughly review the items you requested. If you do not approve of the information provided, you have the right to withdraw from the transaction and have your earnest money deposit refunded to you. If the business and all the information gathered meets your criteria and you fully understand all aspects of the transaction, you are now ready to end the “due diligence phase” and transfer ownership of the business.

A third party entity, such as a Title company or an Attorney, will now prepare the final transfer of documents and obtain clearances for taxes, etc. in order to assure you are receiving the business free and clear of all encumbrances that were not previously negotiated. Congratulations! You have just acquired a business!