6 Steps To Owning The Business Of Your Dreams

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 Brokers Gold Coast will provide you with the best advice to ensure you make the very best decision possible. 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 Broker. A Hallmark Business Broker will be able to identify how your background may be best used to your advantage when buying a business. At this stage you will also sign a Confidentiality Agreement that prevents you from discussing the business with anyone other than your professional advisers.

Step 2:

Request a list of businesses that meet your buying criteria. The Hallmark Broker will discuss the merits of each of these businesses in turn and provide you with a Memorandum of Information on those businesses that interest you. If applicable, Hallmark Brokers will also be able to show you a DVD on businesses that interest you. The Memorandum of Information 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.

Step 3:

Request an inspection of the business that you are interested in. Every Hallmark Broker 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 Memorandum of Information. 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 Broker about making an offer on the business. Hallmark Brokers do not rush into signed contracts, but will discuss the offer with you verbally, and then the seller, verbally, until all parties have reached a satisfactory position. Only then will Hallmark Business Sales prepare a Business Contract. This will be ready within 24 hours of “offer and acceptance”, and is signed by you in the presence of a witness (usually your Hallmark Broker) 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 (excluding stock).

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 Memorandum of Information and the Business Contract. During this period you may also be seeking finance for your purchase; Hallmark can introduce you to ‘business friendly’ banks 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 brokers show you just how easy the process can be.