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Buyer Representation
Thinking about purchasing a Business?...
Before you decide to invest your hard earned money into purchasing a Business, you must ask yourself “Why am I doing this?” Everyone has a reason for partaking in such a venture but the reason “Why?” has to come from you, not others. The reason being, it becomes the driving force which provides assurance to your success. You must be strong enough to overcome the obstacles you will encounter in the day to day operation of a Business. You must know your strengths and weaknesses before investing in a Business. Find a business that compliments your strengths.
Buyer Beware...
Most Businesses for sale are “listed” with a Business Broker. A Listing (Seller’s) Broker represents the Seller’s interest exclusively, and must inform you upon “first substantial contact” that he or she is representing the Seller. First Substantial Contact occurs after general “non-business” conversations have ceased and the conversation is now focused on the Business listing(s) you are interested in. You will be asked to complete minimally two types of FORMS before seeing any detailed information about the listing(s): BUYER PROFILE AND NON-DISCLOSURE FORMS.
A Listing Broker will show you listings that are hopefully in your income requirement range. A Professional Broker should provide you with a Seller‘s Disclosure Statement. The Broker will DISCLAIM all Historical Financial information presented by the seller. Ask yourself this question: “How can a Broker disclaim the Historical Financial information but use THIS information to Price the Business he is listing?”.
REMEMBER, the Listing Broker has one main goal in mind... sell their client’s Business no matter its condition...good, bad or ugly. Brokers usually “Puff Up” the sale by showing you its potential which isn’t reflected in the Financial Statements while providing you with the Seller‘s “Reason For Selling”.
Why you need Buyer Representation...
WITHOUT BUYER REPRESENTATION YOU MAY INADVERTANTLY SAY THINGS THAT THE SELLER’S BROKER CAN USE TO HIS/HER ADVANTAGE. ASIDE FROM THE HISTORICAL FINANCIAL STATEMENTS, THERE MAY EXIST SOME FUTURE EVENT THAT COULD ADVERSELY AFFECT THE COMPANY’S CASH FLOW. Do not rely on STATEMENTS made by the Seller or Broker because IT IS YOUR RESPONSIBILITY TO ASSESS THE COMPANY’S FINANCIAL CONDITION AND FIND OUT THE UNDERLYING REASON WHY THE SELLER IS REALLY SELLING THE BUSINESS.
Venture Business Consultants, LLC represents serious Buyers who wish to save money in the SHORT & LONG term. You will always need an Attorney and a Tax Professional when Purchasing a Business. It is a rare occurrence that you will purchase the first business you observe. Industry statistics show that only 1 of out every 5 Businesses listed actually sell. Hiring an outside Accounting Professional who is paid by the hour to observe and perform Due Diligence services for various Businesses on your behalf will become extremely costly to you.
At Venture Business Consultants, LLC, we REPRESENT YOUR INTEREST EXCLUSIVELY. We advise and work closely with you from your initial observation of multiple Business Listings through closing the sale which includes Purchase Price Negotiations, Pre-Financing Assistance and Due Diligence. In addition, Venture Business Consultants, LLC can provide transitional support by setting up your Company’s Accounting Infrastructure and once settled in, can restructure your Business to increase operating effectiveness after the sale.
Venture Business Consultants will charge a retainer fee for services performed in connection with Finding the right Business for you. If you are serious about purchasing a Business and are interested in knowing more about the value added services we provide, call our Office or click the
“Contact Us” button located on This Page or the Home
Page.
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