What the Current Existing Owner likes to see…

Looking to own an existing business is not easy and you will have questions and concerns. Helping you acquire a business creates just as many questions and concerns for the current existing owner. You can often get a significantly better investment price and terms by being aware of the current existing owners needs and removing some of his or her uncertainties.

• Resume and Financial Statement.  The more information the existing owner has on your past experience, qualifications and financial situation, the more likely he/she will accept the proposal you make. By extending financing to you, the existing owner is acting as your banker, and he needs to feel comfortable with you.  Remember, once the existing owner accepts your proposal he is committed, but you still have contingencies to remove before moving ahead.

• A Fair proposal. A fair commitment is one that realistically satisfies the needs of both new owner and existing owner. Sometimes that results in a proposal, which is quite different from the listed total investment and terms. Your professional business transfer specialist will help develop a win-win proposal. A word of caution: What about “low ball” commitments?  Sometimes they damage your relationship with the existing owner. This could result in reducing your chances of getting the business for a fair total investment level.

• Reasonable initial Investment. Every new owner wants to conserve cash. But, a very low initial investment can indicate a new owner’s lack of commitment to the business. The number one concern of existing owners is the safety of taking a loan agreement from the new owner of the business. If the seller questions a new owner’s commitment or seriousness about the business, the seller may not negotiate seriously with that potential new owner.
  
  
• Quick Removal of Contingencies. It’s to everyone’s advantage to proceed through the contingency removal phase in a quick but thorough fashion.