Owning a business is the greatest way to build wealth and take charge of your own destiny. As entrepreneurs ourselves, we believe in the incredible financial power and freedom that owning a business creates.There are two paths to business ownership; buying a business, or starting a business. Although starting a business can be a very exciting and satisfying experience, there are many benefits to buying an existing business. When you buy an existing business you get customers, sales, staff, brand name recognition and a proven business concept. You also get increased access to capital, as banks are much more likely to finance a business with a strong track record than a new start-up.
So you want to buy a business? That’s where we come in. Murphy Business is the largest Business Brokerage firm in the world, and we can help you find a business of any size, in any industry. Buying a business will be the biggest financial investment of your life, and we can help you find a business that works for you and gives you the best chance for financial success. Our process includes:
Step 1: Getting Started
We like to meet all buyers in person. However, if that is not possible due to distance, continuous communication by phone or email can be effective. We begin our process by gathering detailed information about you to establish your financial capabilities, your skills and experiences, and your personal and professional goals. This information ensures your commitment to the process and helps us determine the best types of businesses to pursue.
Step 2: Education
The reality is, you’ve probably never bought a business before. If you have, you haven’t done it very often. We can help. You won’t feel comfortable making a decision until you understand what it takes to buy a business. We will explain the process and help you understand the realities of the current marketplace. You will learn how to use online forms, to search the Internet for businesses, to read Business Listing Information sheets, to understand basic valuation concepts, and to review the opportunities that we present.
Step 3: The Search
This is where the rubber hits the road. Once we’ve done our homework, we will start your search using our extensive market resources. We will help you search for business, assist you in signing confidentiality agreements, get you detailed information on the businesses, set up showings with the seller, and help you evaluate the information provided by the seller. We will refine your business search and evaluation until you find the business that is right for you. If your search takes longer than a few months, we may need to circle back to an earlier stage and better define your goals and needs.
Step 4: The Offer
Once you’ve found the business for you, it’s time to put pen to paper and make an offer. We will share our extensive expertise in deal structure and negotiation, and help you craft an offer to purchase, with any necessary or desirable contingencies to protect your interests. A purchase and sale agreement will be presented to the seller with a deposit of good faith held in escrow to demonstrate your seriousness. After any negotiations, you should be left with an executed purchase agreement to buy a business.
Step 5: Due Diligence
This is where the work gets started. It’s now your responsibility to fully inspect the owner’s representations and ensure that they are accurate. We will coordinate the efforts of your legal and accounting professionals and strive to satisfy all contingencies. If there is financing involved your application must be approved by the lender, proving that you are qualified for repayment of the loan. We will work with both parties and ensure that the due diligence process goes smoothly. Due diligence can be an emotional time, but is always the most successful when both the buyer and seller operate in good faith.
Step 6: The Closing
Final preparations will be made for lease assignments, utility transfers, financing, merchant service accounts, inventory counts and any other last minute preparations to make the transfer as seamless as possible. Your acquisition will usually be completed by an attorney with the signing of several documents and the payment of the balance of the purchase price. Once this is complete, you now own a business. Congratulations!
Step 7: After The Deal
After the deal is closed, there is still lots to do to make a successful transition. In many cases, the seller will stay on for a period of time to train you, the buyer, and introduce you to employees, customers, suppliers, and more. There may also be hold-backs in the deal that need to be paid out depending on certain triggers or financial performance criteria.
So that’s it! If you’re looking to buy a business, get in touch. We would love to help you turn your financial dreams into a reality.