Buyer Process
Duran Advisors understands that finding a business to purchase can be a time consuming process. Our buyer process is purpose built to ensure confidentiality and fairness to both buyer and seller.
Step 1: Inquire
All of our listings can be found at the “Businesses For Sale” link under our “Buying” tab. Once a particular business has been selected, click the “Request More Information” button to make an inquiry. Fill out the short form. The password is necessary since it will allow you to access the files of the business you selected.
Step 2: Fill out the NDA and Short Form Financial Statement
Once you submit the inquiry, you will be sent an NDA and short form Financial Statement. The Non-Disclosure agreement is necessary because business sales are confidential. If employees, customers, or suppliers were to find out the business is for sale it would damage the business. The short form financial statement is to have a conversation about financial resources to buy the business. We have been hired by the seller to prescreen for financial capability. The statement is an internal document that will not be released to a third party without expressed written permission.
Step 3: Review Preliminary Information
Once you have completed the disclosure documents, you will be contacted by someone in our office. They will talk to you about the business and release the initial information packet. If a Matterport 3-D virtual reality scan has been performed on the business, it will be sent for your review. If the business is a retail business and you wish to visit, please keep in mind that the sale is confidential. Most likely the employees do not know the business is for sale. Therefore, if you expose the business for sale the owner will absolutely not sell to you. Confidentiality must be respected at all times.
Step 4: Buyer/Seller meeting
Once you have reviewed the initial information, the next step is to meet the owner. This will be arranged by an advisor from our office. Ideally, the meeting will take place at the business, but can also be done by telephone depending on the location of the parties. In order to ensure confidentiality, the meeting may need to be scheduled after hours. If you would like to ask the seller specific questions, it is a good idea to submit them to your advisor with adequate time to get answers before the meeting. This seller may need to get the answers from their CPA or a staff member.
At the meeting, you will receive a tour of the business. The seller will want to hear why you are interested in the business. It is important they hear your story to better inform you of how the business will or will not work for your particular purpose. The seller will usually allow for a release of financials at the end of the meeting. The goal of this interaction is to get you all the information necessary to determine if you would like to make an offer on the business.
Step 5: Making an Offer
The advisor you are working with will write up the offer for you using the standard documents from our office. When we draft an offer, we include four standard contingencies. The are listed below. You are free to have the offer reviewed or have your own offer drafted by your legal council.
- Buyer must approve the lease
- Buyer must approve the financials
- Buyer must approve of the training and transition period
- Offer is contingent on buyer financing
Step 6: Due Diligence & Closing
Once an offer is accepted, due diligence begins. The advisor will facilitate due diligence for the buyer. When closing appears definite, the seller’s advisor will contact the agreed upon closing attorney to draft the closing documents. A walk through of the business will take place directly before closing and then the buyer and seller will meet at the closing attorney’s office. Once the documents are signed, the seller will be issued their check. The buyer and seller will usually go directly to the business to begin the transition process.
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