Professional Business Brokers in Central Florida
Buying A Business
Our services can help you to buy a business
Buying A Business with Central Florida Business Brokerage
Purchasing a business is one of the most significant financial decisions you will make. Our experienced brokers guide you through every step of the process — from finding the right opportunity to closing the deal.
The Buying Process
Decide you would like to purchase a business.
Contact a Business Broker to help find a business that meets your objectives.
Sign a Confidentiality Agreement.
Provide a resume and financial information to your Business Broker.
Review the businesses to ensure they meet your financial needs.
Meet with the Seller / Owner.
Make an offer which will be presented to the seller.
Negotiate the purchase price.
Once both parties agree on the terms, conditions, and price, an escrow deposit is made with a purchase agreement that both parties have signed.
Due diligence takes place to verify all the details of the business.
Closing documents are prepared by the buyer and seller's attorneys.
Inventory is taken.
A closing will take place for the business to change ownership.
The seller will train the buyer for an agreed amount of time.
What to look for when buying a business?
Central Florida Business Brokerage | Our Featured Listings of Businesses For Sale
How long the business has been in business?
A business with a long track record means there are good reasons to be operating. It will be well known in the area, and people will be used to patronizing the business or using its services. The longer it has been in operation, generally, the better the business.
How long the present owner has owned the business?
The longer the present owner has been in business, the more likely he or she has been successful. People don't stay in business if they are not making money.
Why the present owner is selling?
If the owner has been in business for six months, is 37 years old, and wants to retire, you should be suspicious. The more valid the reason for sale, the more realistic the seller will be in considering your offer. However, keep in mind that after five or six years or more, people do get restless, "burn-out" sets in, and people look for new challenges. Why the seller is selling is an important question – get the answer.
Why books and records are important?
The financial records are a good indication of how well the business has been doing over the years. Keep in mind that tax records are not designed to show the business in the best light; no one likes to pay more taxes than they have to, and business owners are no different. Generally, tax returns are a worst-case scenario. You need to be able to look at the expenses and discover which ones are non-cash items, such as depreciation and business use of home and vehicles. A professional business broker can point these items out to you. Keep in mind that financial records are only history. There are no guarantees that they will or can be duplicated or repeated. All of your profits are future. In the final analysis, the financial records of the business are an indicator of what the business has done; what you do with its future is up to you.
How to determine if the seller is reporting all income?
The simple answer is – you can't! Not reporting income is against the law. You should consider only the income that the seller can show you. Many sellers will tell you about how much they are "skimming," but you should ignore their statements since they have no way of proving these amounts. In determining whether a business is the right one for you, you should base the decision on the figures supplied to you by the seller.
The bottom line
Being in business for yourself can be a daunting prospect. There are no guarantees. At some point, after all of your investigation is completed, you will still have to make that "leap of faith" that is necessary to proceed with the purchase of the business. You will have to work hard, perhaps even "tighten your belt" a little, and perform many different jobs to be successful in your own business. But, if running your own show, making your own decisions, not having to worry about job security, and just being on your own are important – then owning a business is for you. After taking this leap of faith, almost all business owners will tell you they would never return to being an employee.
Ready to Find Your Business?
Our brokers are ready to help you find the right business opportunity in Central Florida.