Buying a business is a multiple step process that is complex and can take a few months to complete. Business brokers guide their buyer through the nooks and crannies of the business in question before closing a deal. The main steps to buying a business include:
Signing a Non-Disclosure Agreement (NDA)
- This is the beginning stage of a potential deal. A buyer usually discovers a business for sale on a broker’s website or through the multiple listings sites that the particular broker uses. A buyer signs an NDA with the broker if he/she wants more detailed information about a business such as financials and business name and location. An NDA protects the seller from having any sensitive information about his/her business being leaked.
Meeting between Buyer, Seller, and Broker
- At this point the broker gets the potential buyer and seller together for a meeting. This meeting is crucial because the potential buyer and seller are able to get a feel for each other and are able to respond to each other’s questions directly, with an intermediary present.
Buyer submits Non-Binding Offer
- If the buyer is interested in the business, he/she submits a non-binding Offer to Purchase to the seller. Usually the buyer’s broker helps him/her type up an effective offer. At this point, the buyer provides a refundable deposit.
- During due diligence, the seller discloses trade agreements, financials, etc. to the buyer.
Contract is signed
- A contract is drafted. The buyer and seller sign and agree on final terms and a payment is made
- At this point the deal is done. The buyer, seller, and attorneys sign all final additional documents and a final payment is made.
A business broker guides a potential buyer through the long process of purchasing a business and provides guidance and support throughout the way. We are one of the leading NYC business brokers who can make your business buying or selling process smoother with our experience as expertise. You can also contact us to get free consultation for your requirement of New York business for sale.