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Ten Things to Know When Buying a Business

Compass Business Sales and Acquisitions

By Peter May, CCIM

Buying a business can be a daunting task. Most buyers are faced with challenges they have never encountered. When you work with Compass Commercial we offer experience and sound advice to get you to your goals.

1. Goals

You’ll need to define and refine your goals in any business purchase. We help by asking about your preferred business type, your motivation and your requirements.

2. Finances

What can you pay? We help define what you can realistically acquire, including your ability to attain financing. We will educate you on financing availability and the terms of the deal.

3. Strategy

We work with you to outline a plan from the beginning of your search through business ownership. We make sure that you are positioned to succeed after the keys are turned over.

4. Team

You’ll need other professionals besides our brokers to pull a purchase together. We will guide you to professionals when it’s time to consult attorneys, accountants, bankers and other brokers.

5. Search

You may not feel comfortable contacting local businesses about their availability for sale. We do it all the time. As professional business brokers, it’s part of our job to contact specific businesses on your behalf in an effort to determine the current owners’ interest in selling. We are members of national business brokers’ networks, which allow us to cast a wider net if your interests grow outside Central Oregon.

6. Review

You’ll save time by having us drill down the facts and cull opportunities that are unrealistic or deceptive. There are some key indicators of stability (or instability) that we review and will bring to your attention.

7. Offer

We can work with your legal council to help craft the Offer to Purchase Agreement or use our standard letter of intent. We will help develop price and terms that make sense for you and promote your success.

8. Investigate

Offers are written with a window of time dedicated to Due Diligence. This process is key to determining the viability of the business and its fit for you. We know what to look for in discovery on your behalf.  You’ll avoid making a hasty or not fully informed decision.

9. Negotiate

Most buyers have never bought a business before and our expertise in this area can mean the difference of thousands of dollars. We genuinely strive to make the transaction truly a “win-win” for all parties.

10. Close

As they say, “It ain’t over ’til it’s over.” We can help facilitate this process all the way through to the signing table, communicating with the selling party to improve the chances of closing the deal. A successful and satisfying transfer is our goal.