This guide will take you through the entire buying process, from initial exploration to final closing.
Step 1: Initial Exploration
Start by exploring different businesses that fit your interests, skills, and financial goals. Narrow down your options based on industry, location, and potential profitability. Our listings can be found here: www.nashbb.com/businesses-for-sale
Step 2: Engage with a Business Broker
When you’ve narrowed your search to a few specific businesses, reach out to a business broker to start the information gathering process by signing an NDA or Confidentiality Agreement.
Step 3: Review the Confidential Information Memorandum (CIM)
Once you identify a business that interests you, you'll sign a Confidentiality Agreement or Non-Disclosure Agreement to receive the CIM. This document provides detailed confidential information about the business's financials, operations, and potential opportunities.
Step 4: Submit Questions to Broker
After reviewing the CIM, feel free to submit any general questions or schedule a call with the broker to clarify details about the business.
Step 5: Call with the Seller
If you're still interested, we will arrange a call with the business owner. This call gives you the chance to ask questions directly and get a deeper understanding of the business. If it goes well, we can arrange an in-person meeting.
Step 6: Submit a Letter of Intent (LOI)
If you decide to move forward, you'll submit an LOI. This document outlines your offer and the key terms of the proposed deal. It’s non-binding but signals your serious intent to purchase. We will help you to draft this LOI including price and other terms strategies.
Step 7: Due Diligence
Once the LOI is agreed upon, we enter the due diligence phase. This is when you take a closer look at the business—financials and operation—to verify that everything is as represented.
Step 8: Financing
If you're using financing, you'll begin working with your lender during due diligence to make sure funding is ready by the time due diligence concludes.
Step 9: Negotiate and Finalize the Purchase Agreement
After due diligence, we’ll work together to draft and negotiate the Purchase Agreement. This binding document will cover the final terms, price, and any contingencies.
Step 10: Closing
On the closing day, all documents are signed, funds are transferred, and ownership officially changes hands. Congratulations, you’re the new owner!
Have Questions?
We’re here to guide you every step of the way. If you have questions, just reach out.
Patrick Marsch | Owner
Nashville Business Brokers | nashbb.com | (615) 544-5380