To help me—the Licensed Real Estate/Business Broker and Intermediary—understand your—the buyer’s—needs and to learn more about what you are looking for in a target business to purchase, please provide me with the following:
- Do you have access to a computer, a printer and a fax or scanner so we can communicate? Having a smartphone is not enough.
- Where do you now live or plan to move your family to?
- In what general area would you like the business to be located?
- What amount of cash-flow/profit would you like the business to generate on an annual basis after debt service (repayment of loan)?
- Please provide me with a résumé or bio so I can understand your skill set and able to share it with potential sellers who will want to know who you are.
- What types of businesses would you consider, or—equally important—what types of business do you not want to consider.
- Are you prepared to put in the time needed to do this well? The most important aspect of looking to buy a business is to be patient. You cannot afford to make a mistake; you don’t want to buy just any business. If it doesn’t check out or feel right, we need to keep looking. It is not smart to rush the process.
- How much cash do you have to invest? Most sellers will want you to provide a personal balance sheet to show you have the resources required before providing you with their financial records. This information is needed at the start, so when we find a fit, we can move fast. Are you okay with that?
- Do you agree to respond to requests on a timely basis? Time is of the essence. Once we start looking at businesses, the velocity of the information flow back and forth between broker and buyer is very important. Quality businesses don’t remain available for long. When we find a likely target, we will have to move quickly.
- Are you willing to help in the process by using my website to find possible targets with me? I will look for possible targets for you each week; however, I have found that it is the buyer who often finds the potential target, and I chase it down. www.dolansales.com/search-businesses/
- Will you provide the necessary financial information to keep the process moving along? I can help you secure an SBA Guaranteed loan. To do so, you need to:
- You must have zero derogatory information on your credit report.
- You need to be healthy enough to buy term life insurance to cover the amount of the loan.
- If you own a home, be mentally prepared for the bank to put a lien on the property as additional collateral.
- For most businesses, the bank will want to see that the business skills you have established over the years are generally adaptable to the business you are considering buying.
As a seller or a buyer, if you would like a confidential conversation about how to prepare, please contact me on my cell, 954-579-4687, or by e-mail at firstname.lastname@example.org. My LinkedIn profile is at: http://www.linkedin.com/in/dolansales.