The Process of Buying a Business

Buying a business can be a complicated transaction.  This is generally how things flow:


Prepare
Think carefully about the selection criteria – i.e motivation, industries, location, $ investment, staff structure.

Remain Flexible
Try to be open though to other possibilities.  There is no such thing as a perfect business.  

   
Search
Look in the Business Opportunities sections of newspapers and websites
Get yourself on the database of reputable Business Brokers 
   
Research
Once an opportunity has been identified, request a confidentiality deed and review the Information Memorandum.
Do some preliminary research on the business and industry.
Meet the current owners and review the business first-hand.
   
More Research
More thoroughly review competitors, industry conditions, the market etc and possibly meet again with the owners. 
   

Make An Offer
$ + terms and conditions such as subject to finance and due diligence, hand over period, restraint of trade conditions etc.
   
Be Ready
Prepare yourself for the sure fact that buying a business is stressful and requires focus on the ultimate objective and a cool head!
   
Negotiation
And then drawing up of the contract 
   
Terms and Conditions
Complete due diligence, confirm finance, obtain advice from professional advisors, satisfy other terms and conditions.
   
Completion    
   
Post Acquisition hand over from vendors
Prepare a hand over strategy with the vendor for staff and customers.