How to buy a business

So how do you Buy A Business For Sale?

There are several ways you can buy a business for sale, each with its own advantages and disadvantages.

Buy a listed business for sale through a business broker

This is the most commonly used method. Similar to selling a house, the vendor pays a fee to the broker to promote the business and be the in between person in the negotiations. This has a distinct advantage as you are kept as a third party and lets the broker deal with all the negotiation as a middle person direct with the seller.

Advantages:

  • Degree of separation between the buyer and seller
  • Pre-qualify your purchasing ability before making your intentions known
  • Have an experienced negotiator control a mutually beneficial outcome
  • Let the broker take the frustration out of the process for you

CPI Business Sales offers this service.

Approach a private business for sale direct

A business for sale may have a note in the window for sale, or they may even advertise themselves. In this case you are invited to enquire direct with the vendor and control the whole process yourself.

In theory you may believe that the purchase will be cheaper as there is no broker involved. In reality unless you are an experienced buyer, you will probably become frustrated with the process and incorrect documentation or checks may end up costing you a lot more than you bargained for.

You can engage a broker as a buyer’s agent to do the negotiation for you.

CPI Business Sales offers this service.

Register with a business broker on a buyers register

If you are considering buying a business for sale, then you should register on a confidential buyers register. To do this, the broker will gather information from you around what you are seeking, your financial situation and your lifestyle plans (Such as no weekend work etc.). It is not unusual for a new listing to be offered to the buyers register before listing to the public.

CPI Business Sales offers this service.

Engage a “Buyers agent” to find a business for sale for you

A buyer’s agent is where you pay a broker a fee to find and negotiate a business purchase on your behalf. This may be because you are looking to expand or consolidate in the market, or you just know what you are looking for and want to try and secure a fair market transaction.

CPI Business Sales offer this service.

 

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