A FEW COMMON QUESTIONS
Buying or selling a business can be a complicated venture. While some businesses are sold without the help of accountants and attorneys, we strongly recommend that both the buyer and seller engage professionals.
We are generally paid by the seller not the buyer. However, other costs do come into play. Legal and accounting fees are generally required and additional startup costs may also come into play.
Depending on the complexities of the business, the former owner will offer varying levels of training. On most small businesses, the owner will offer training for two to four weeks at no cost to the new owner.
As part of the acquisition process, you will have to go through “due diligence.” During this period the seller is required to present documents to verify their profit numbers. You may want to hire CPA/Attorney help with this process.
No, while 100% of the purchase price is sometimes required, sellers will frequently provide owner financing to some extent. Additionally, a bank may be able to loan up to 80% of the purchase price through a loan sponsored by the Federal Loan programs.
Businesses vary in price a great deal, however, it would be unlikely that one could buy a business with much less of a down payment than $30,000.
Go to the “Biz for Sale” search tab and fill in what state, the counties, minimum net income, and what type of business. This search page allows you to look at over 4000 businesses statewide.