Buyer Side Engagement

Representing the Buy-Side Helping you Find a Great Deal in an Industry that Matches your Target Criteria

Our Guidance with Buying the Right Opportunity to Make Sure You’re Moving on a Property that is Undervalued and Has a Lot of Promise

We Eliminate the Poor Options on the Business Market and Direct You to the Best Value for Your Buying Power to Make Sure You’re Acquiring Something that is Recession-Proof and a Rock-Solid ROI

Proper Protocol for a Buyer

When interested in a business, it is important to understand what the typical processes are that expected of you and this could be a tedious process to do them in order to build rapport with the seller’s agent and the seller. If not, you risk losing the deal or getting bested on the numbers because you missed necessary steps.

• Be Cordial and Respectful of Processes -We really love speaking to buyers. We love to understand what they are interested in. This business only or a business that matches certain industry criteria so we can steer you in the best direction for you.
• Read the Prospectus and CIM – As a rule, make sure you read the prospectus in full before asking questions. This will reduce redundancy.
• Go through the Broker- Do not circumvent the broker as a means of trying to speak directly with the seller to get a ‘better price’. A call will be arranged when you are serious. Sellers will communicate to brokers why did you waste my time, so avoid a bad situation altogether.
• Do your HW – Look up the business. Go to the website. Place a small order. See if they are legit. If you don’t know the industry, make sure you do your HW on the industry.
• Submit a Ballpark Offer – before you hop on the call with the seller, you want to gain trust with the broker and seller. You don’t have to show proof of funds right away, but you want to show you’re serious and in line with valuation. If you are not close and you just want to get a business for pennies on the dollar or a fraction of their asking price, and finagle a deal by getting 90% or more of seller financing, then you are going to be worlds apart. Be upfront about that from the start. Don’t waste anybody’s time. A seller wants 100% cash, it doesn’t mean they won;’t be flexible but we do not waste our client’s time with bad deals. If you say we are looking to put $x down and $y over time if everything checks out and matches the prospectus financials, we can move to next steps fairly quickly.
• Submit an LOI – Generally, if you are in the same ballpark, we can have you on the call with the seller. From there, your intention of the call should be to make sure boxes are checked off so that you can submit a formal LOI and get the process started. Calls are not preliminary in nature. You have a prospectus in hand that took hours and hours with the seller to formulate to answer 95% of your questions. Calls are there to verify what you need to know – is the seller a nice person, legit, do they have what it takes to be a partner or stay on, what are their intentions with the sale, etc.
• Due Diligence – once we have an acceptance in the form of an LOI, then we can move to due diligence. This takes anywhere from 7 days to 60 days, on average. 7 days if this a fairly simple all cash deal or low upfront. 60 days if you need several parties involved including financing for a large multi-million dollar deal. This is where you want to get tax returns, bank statements, and any other questions you need. An on-site visit may be appropriate but impacting the seller’s sales probably won’t be something that will fly without a deposit.
• Closing – Once everything checks out, you will get details for proper closing instructions. Usually this will be done by wire through escrow or directly to the owner based on the nature of the deal.
• Transition and Training – This is where the seller will stay on to help you understand everything in the deal. This will be baked in to the terms. You want to understand processes, but taking advantage of the seller is not something you want tyo do. The seller, unles otherwise agreed, is exiting. You want to be well trained on the business, but you are also buying a business which takes experience to run. No business venture is without risk, including one that you are buying no matter how many years it has been running successfully. You are the new owner now.
• Consulting – After the transition period is over, the seller is usually available for consulting. Hire them per hour or incentivize them with a % of sales they bring in if they are good to keep around to produce for you. Often times, a seller would like to be involved, but they want to be compensated for it. Make it a win-win and don’t expect services for free after the training period is over just because you bought a business from them.

Not Sure if Now is the Right Time?

An acquisition is not as complicated as you may think.

It never hurts to be prepared and see what is out there and what it will take.

You are in control to prepare an offer and LOI and see if there is a fit.

If you are on the sidelines you won’t be able to do some bigger deals. When is it ever the perfect time. You have to be calculated, but you may have to take calculated risk.

What Do Your Services Cost?

We are transparent with costs.

Typically, our buyer success fee is 2.5% upon close. We only receive that money when we actually procure a deal you are willing to accept. You are 100% in control. So, you only take deals that make sense. You are 100% in control of accepting or rejecting any offer that comes your way.

This is a lot of work if you  know what you are doing to navigate the landscape and buy the right business for your needs.

We have a buyer engagement one-time fee to start with any buyer engagement so we can start the hunt, save you time, and bring you the best deal/s. Most businesses take on average, 2-6 months to buy. Buying a business is a big decision. You’ll pay us small one-time fee to start with us, based on the size of the businesses you want presented, and then we will introduce you the exact deals you have been looking for.

You are going to be spending hundreds of thousands, perhaps millions of dollars, plus this might be your livelihood for years. It is certainly worth the initial fee to get a good team who supports you all the way through.It really depends what your goals are – a quick sale or maximum valuation and to let the market breathe.

Some fees you should account for include the actual transaction which may include legal fees when it comes to paperwork with a Buyer, Escrow fees where necessary, and although rare, Support and Transition fees if they are part of your negotiations with the Buyer.

Retain Us for Your Buying Search