Owning your own business can be a wonderful and very financially rewarding experience. However, if you do not choose the right business for your needs, it can also become very stressful. Hallmark Business Sales will provide you with the best advice to make the right choice for you. We have broken down our business buying process into 6 simple steps, which we will guide you through, every step of the way.
/ Step 1
Meet with an experienced Hallmark Business Sales Executive. A Hallmark Business Sales Executive will be able to identify how your background may be best used to your advantage when buying a business. (Ensure any broker you use works in a team environment where all of the businesses listed by the brokerage are understood and known to all brokers. Most brokerage environments insist only the broker who listed a business for sale can sell it. This is disadvantageous to both buyers and sellers as it limits the sharing of knowledge and available opportunities).
A Hallmark Sales Executive will request that you sign a Confidentiality Agreement that precludes you from discussing the business with anyone other than your professional advisers.
/ Step 2
Request a list of businesses that meet your buying criteria. A Hallmark Business Sales Executive will discuss the merits of each of these businesses in turn and provide you with a information Memorandum on those businesses that interest you. The Information Memorandum produced by Hallmark is considered to be the best in the industry and provides full details of the business, its background, the industry sector, trends, premises, staffing details, suppliers and clients, plant and equipment, strengths and opportunities, and financial analysis usually including 3 years of tax accounts.
/ Step 3
Request an inspection of the business that you are interested in. Every Hallmark Business Sales Executive is familiar with every business listed within the territory covered by that office, and is able to discuss the succinct points of a business that may not be covered in the Information Memorandum. An inspection is usually done either before or after operating hours of the business to avoid any potential disruptions to the business. Inspections take around an hour and are an excellent opportunity for buyers to get a feel for the business.
/ Step 4
Discuss with your Hallmark Business Sales Executive about making an offer on the business. Hallmark Business Sales Executives do not rush into signed contracts unless the buyer requests this, but will discuss the offer with you verbally, and then may request a Non-Binding Indicative Offer to present to the seller. Negotiations continue until all parties have reached a satisfactory position. Only then will Hallmark Business Sales draft a Business Contract for review by your legal professionals. When this is ready, usually within 24 hours of “offer and acceptance”, and is signed by you in the presence of a witness (usually your Hallmark Business Sales Executive) after the contents have been fully explained to you. At this time you will also need to deposit funds into Hallmark’s Trust Account (fully guaranteed) that represent 10% of the purchase price of the business.
/ Step 5
Begin the due diligence process. You have 10 business days in which to satisfy yourself that the information upon which you have based your offer to buy is substantially true and correct. This is formally known as “Verification of Books and Records”. Hallmark can assist in this process by providing the solicitors and accountant acting for each party with a copy of the Information Memorandum and the Business Contract. During this period you may also be seeking finance for your purchase; Hallmark can introduce you to ‘business friendly’ financial institutions if required.
/ Step 6
During the 2 – 3 weeks after completion of the due diligence/finance stage, Hallmark Business Sales will oversee the smooth transition of the business from the exiting owner to the new owner. Whilst much of this work will be completed by the solicitors acting for each party, Hallmark Business Sales ensures there are no delays and will support the flow of communication between all involved parties.
Contact Hallmark Business Sales today for more in-depth information on our 6-step buying process. Let one of our experienced business sales executives show you how easy the process can be!