How to Buy a Business

How to Buy a Business:
Eight Steps To Buying a Business

Step 1 Commit To The Process

You have made the decision to get out of your comfort zone and purchase a business. Being a business owner is one of the greatest ways to build wealth and take charge of your own destiny.

Step 2 Help Us Help You

We always recommend meeting in person, however, if that is not possible due to distance, communication by video, cell phone or email can be just as effective. The process begins with us gathering detailed information about you, to establish your financial capabilities, your skills and experiences and your personal life goals. This information helps us determine which types of businesses are most suitable for you.

Step 3 Education

We are committed to helping you understand the realities of the current marketplace and guiding you through the appraisal process, carefully examining the pros and cons of different business categories so you can review our available opportunities.

Step 4 Refining The Search

Research the available opportunities and identify the ones of interest. We will provide you with detailed information on those businesses. You can then review the information provided to you and upon confirming your continued interest, we will arrange a face to face meeting with the business owner where you will be able to probe the seller and garner further information on the business.

Step 5 Time To Make An Offer

Once you have identified a business that you would like to purchase, a draft Conditional Sale & Purchase agreement will be completed. It is important that your lawyer is involved in this process. Upon presenting your offer, negotiations between the parties begin.

Step 6 Due Diligence

This period provides you with the opportunity to ensure the owner's representations of the business are accurate. Transworld will coordinate the delivery of all the documentation required by your legal and accounting professionals so they can complete the investigation on your behalf.

Step 7 Pre-Settlement

Final preparations will be made for lease assignments, utility transfers, financing, merchant service accounts, stock counts and any other last-minute preparations to make the transfer as seamless as possible. Your acquisition will usually be completed by your accountant and lawyer with the signing of several documents and the payment of the balance of the purchase price.

Step 8 Post Settlement

Congratulations! Transitional training (Vendor’s assistance) by the seller may include meetings with employees and clients, technical education, computer updates, and other essential knowledge transfer. Transworld will be available to assist you with any questions or post-settlement requirements you may have. We encourage you to make the most of this time with the Vendor. It is your responsibility to acquire as much knowledge as possible about the business and its idiosyncrasies during this period.

Once you have purchased your business, it’s important to remember that is never too early to begin planning for the future sale of your business and we will gladly advise you on how to get started.

Lastly, should you have additional questions during and after the buying process, please do not hesitate to contact us.