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PreQualification

prequalificationBuy-a-Business works hard to help potential buyers learn the intricacies of buying a closely held company. The process begins with a confidentiality agreement and interest profile. The confidentiality agreement is signed by the Buyer and prevents the Buyer from disclosing proprietary information to anyone other than their accountant or attorney. Both of whom are bound by their professional code of ethics to maintain confidentiality.  The interest profile provides Buy-a-Business with an overview of the Buyer’s financial position, geographic preferences, commute time, time for acquisition, decision makers, risk assessment, etc. This process makes it easier for the Buyer and broker/intermediary to locate the right business that fits the acquisition criteria of the Buyer.

Below is a sample list of what a seller will consider when talking to a buyer.

  • Ability to close
  • Net worth
  • Credit rating
  • Amount of down payment
  • Experience in the industry
  • Employment history
  • Reason for interest in the company
  • If he/she is genuinely passionate about this business
  • His/her track record
  • Prior business owner
  • What stage is the person in the business search?
  • Motivation to close
  • Chemistry with the seller