BUYERS Frequently Asked Questions
Turn-key operation, clientele, staffing and in some cases the location is all ready to go. You benefit from all this by stepping into an operation that will generate income right away.
All businesses are unique, including the purchase prices. Depending on the type of business, loan size and terms, a business owner may be able to put 10% to 20% down to acquire a business. Many individuals these days utilize the 401(k) or IRA rollover options which allow you to invest into your business without paying early withdrawal penalties or taxes. This is known as Rollovers as Business Startups or ROBS.
It’s always a good idea to get professionals involved when buying a business. Accountants and Attorneys can make sure you get it right the first time, corporate structure, rollover for business startups (ROBS), tax liability. You’ll want to get your insurance agent involved to make sure you’re covering yourself with the correct business liability coverage, along with content coverage, etc. These professionals will help you feel secure; while you focus on what you want to spend your time on, being your own boss!
NAI United Business Brokers are passionate about what they do and the want to be apart of one of the biggest decisions of your life. They are dedicated to providing you outstanding service throughout the entire buying process. You want someone in your corner that is helping you every step of the way, from finding the right business that fits your goals and dreams, walking you through the buying/offering process, the next steps of what your banker will need to underwrite and approve your request, to the closing day. We’ll be there with you every step of the way.
Your NAI United Business Broker is a representative of the seller, they are paid by the seller. There is little to no cost in working with an NAI United Business Broker. There are times when buyers are not sure what exactly they’re looking for, that’s a good time to have an NAI United Business Broker to do a targeted search through their various associations and networks, to find a business that is right for you. If it’s a situation where the broker finds a business for you that is not publicly listed, you as the buyer is responsible for paying the broker fee. The fee will be a percentage of the sales price at closing.
A business is typically listed based on a valuation method. We can provide you some valuation reports to support whether a listed price is fair or overpriced. After review of the valuation, you will negotiate with the seller to come up with an agreed upon purchase price. You need to be aware that most businesses sell for less than their listed asking price. Don’t be afraid to make a reasonable offer. Typically, businesses are financed either by their lender or in some cases, in a seller carryback option (if this is listed as an option).
NAI United Business Brokerage is a sister company to NAI United, which is their Commercial Real Estate Division. Your broker will work with you on both the business and real estate transaction, but they will be handled as two separate transactions.