Sometimes first-time business buyers have a hard time defining business-buying criteria. If all you’ve got is “I want a profitable business” - it will be very difficult to find one. There are more than likely hundreds of businesses in your price range in your desired area of all shapes and sizes, and it would take an enormous amount of time to evaluate each one of them. Your life will be much easier if you are able to narrow down the selection. Besides, it would be a waste of your time to look at any business that isn't in-line with your life goals. Our team can help you use your life goals to formulate your business-buying criteria.

Once you've determined your goals and business-buying criteria, you can begin to look for businesses in the areas that appeal to you. Your first step should be to talk to one of our experienced and qualified business brokers. They can help you narrow your focus to the industries that would suit your goals and practical experience, and help you decide what size business would be best based on the amount of capital you wish to invest. Once you have these basic parameters you can search on your own using our Business Search tool, and your broker will also send you possible matches to consider. Be sure to give your broker feedback on the listings you consider. Your input will be extremely helpful in finding the right options for you.

If (for example) you’re going after a small business with $100,000 net income, a private business search is probably not for you. However, if you’re looking for a business generating $500,000+ in EBITDA, you might want to consider such an option. Although there are some very worthy businesses on the market, sometimes in the higher listing price categories the best ones aren’t listed. Our team has means of identifying such hidden treasures. As professional business intermediaries we will approach the target companies with a specific business-buying proposition. In the event they might be interested, we can move to the next step – evaluating the target business.

Once you've had a chance to go through a number of listings, the next step will be to sign the non-disclosure agreement (NDA) for each business you'd like to learn more about. Signing the NDA will allow you access to the name and physical location of the business, cursory financial information and the marketing package. With all of this information in hand, you can take a deeper dive into prospective businesses, come up with a list of questions and then set up conference calls with the sellers of the businesses you find most interesting.

If you are using our Private Business Search, the next step will be a bit different. Unless approached correctly, most privately listed businesses don’t have any intention to show you any documentation, unless they know and have agreed to the terms of acquisition. On the other hand, you as a buyer can’t formulate the proposal until the target company’s performance is known. It’s a classic catch-22 situation. Our team knows how to properly handle these situations and can help. We will work to move forward and evaluate the business.

If one of the businesses you're considering seems like the right one for you, it’s time to move to the next step – presenting a Letter Of Intent (LOI) or an offer. The difference between the two is that the LOI is usually a non-binding document. An offer is (normally) a part of a binding purchase agreement, yet it’s contingent upon a number of conditions to protect the interests of both sides. The LOI is customarily used for acquiring larger businesses with too many unknowns. The terms of a LOI or an offer are based on the information provided by the seller, and is subject to verification by the buyer and/or their counsel during due diligence. We recommend you use the services of both a business broker and a business transaction attorney for drafting the LOI. Our team is fully qualified for preparing an offer for the purchase of a small business.

Most people probably feel like they would fare well in a negotiation. However, unless you have spent hundreds of hours actually negotiating and closing deals - you can’t be fully prepared to handle it properly. First, when two or more people negotiate a business acquisition, there’s a lot of variables and tension. A good negotiation should be conducted in a calm manner with all emotions kept out. The second problem arises from the parties involved not feeling comfortable enough to convey all their concerns directly to each other. You can express all your concerns to a neutral third party (your business broker) who represents you and knows how to deliver a message without igniting sparks. This is where the knowledge and expertise of your broker will be invaluable. They'll be able to keep the deal on track while simultaneously helping you get the answers you need and your concerns addressed. 

If your offer to purchase or LOI is accepted, the next step is due diligence. Due diligence can be the most challenging part of the business acquisition process. It's your chance as a buyer to get a really good look at what you're buying. You will get to look at the operation itself, the financial documentation, lease agreements, insurance policies, inventory control procedures, staffing, licensing and permitting, etc. - the list can feel endless. You also need to confirm that the information provided to you by the seller is indeed correct. The team at Infinity Business Brokers have been through the due diligence process for hundreds of businesses of all types and can provide you invaluable assistance with this step. 

When the due diligence process has successfully concluded the next step would be to find a qualified escrow agent. The escrow agent will be a third party to protect the funds from any claims. Escrow fees may vary greatly from one company to another, as much as 2-3 times. Our team will assist you to find a qualified escrow company.

Once the contract is worked out, the leases for your space are secured and the money changes hands (through the escrow agency) you've arrived at the closing. Your closing may happen in person, or it may happen virtually - in either case contracts will be signed by both parties and you will be given the reins to your new business. In most cases a training period of a few weeks will be part of your purchase contract, so you'll have the opportunity to learn everything you need to know from the seller before they go. Congratulations, you're a business owner!

Although it may sound like a very trivial task, record-keeping and follow-ups are critically important for a successful business acquisition. Most likely, you will be reviewing several target companies at once. It means several stacks of documents that need to be organized, several email threads to maintain, follow-up telephone calls with information requests, questions, answers - the list goes on. The team at Infinity Business Brokers will save, organize and maintain the above activities for you. We will take the load off of your shoulders and make sure that nothing is forgotten or missed.