Buying a Small Business or a Large Business : Buyer's Guide
So you have decided to buy a business.
We at RS Business Transfer Agents have compiled this short guide to give you an idea of some of the procedures that may be involved in buying a business.
To help you expand your knowledge of buying please refer to other sections of this site:
Please remember - If there is anything you are unsure of on the site, or if you would like any areas explained further - Contact Us.
Take good professional advice at an early opportunity. Talking to your bank, a commercial solicitor and an accountant is strongly recommended.
You will inevitably see a business (or businesses) you are interested in, so what do you do next?
- Contact the Agent.
- Agree to the Confidentiality Agreement.
- Make an appointment to view the business through the Agent.
- When you view - be discreet - the vendor more than likely will not want his customers and staff to know that the business is up For Sale.
- Ask the vendor all the questions you feel need answering.
- Always report back to the agent to give your feelings - good or bad.
If after viewing a business, you would like to proceed further - what next?
- Request the Business Accounts and discuss these with your accountant.
- Ask the Agent to answer any queries you may have.
- Confirm to the Agent that you can raise or have sufficient funds to complete the purchase.
- Make an offer (Subject to Contract) through the Agent.
- Once an agreement has been reached through the Agent it's now that you will instruct your solicitor - choose a solicitor experienced in Business Transfer.
- Try to negotiate with the vendor a transitional period, (for In House training for an agreed period) for you to familiarise yourself with the business, its practices and its customers.
- Your Agent will now complete Head of Terms and supply these to both parties' solicitors.
Remember, as a Vendor or a Buyer - If any problems arise - Contact the Agent.