Buying a business is a major decision. Buying a business with sunbelt is a smart and major decision. Based on years of experience helping people buy businesses, Sunbelt has identified several frequently asked questions. Sunbelt will show and guide you through how to buy a business in Canada. The information below is designed to help you better understand the business purchasing process. If you have any questions about buying a business please contact your closest Sunbelt office for a complimentary, confidential consultation.
Frequently Asked Question About Buying a Business with Sunbelt
- Why should I buy an existing business?
- What things should I know as a business buyer?
- Why should I use a Sunbelt business intermediary?
- How can Sunbelt assist me in locating and purchasing a business?
- What are Sunbelt’s fees?
- What information do I need to provide in order to learn more about a particular business?
- What are the steps of the due diligence process?
Why should I buy an existing business?
A big advantage of buying an existing business, versus starting a new business, is that an existing business typically has an existing cash flow, established customer and vendor relationships, trained employees, and market-proven products and services.
What things should I know as a business buyer?
For your convenience, Sunbelt has created two documents that you will find very helpful to better understand how to buy a business in Canada and all the things that you should be aware of.
Secrets of Buying a Business Under the Right Terms and Conditions is a quick bullet point review of 16 items that are very important considerations for every buyer.
Strategic Advantages of Buying a Business with Sunbelt is another valuable reference document that addresses important advantages of using a qualified Sunbelt intermediary to ensure your success.
Why should I use a Sunbelt business intermediary?
Sunbelt business intermediaries are trained professionals backed by the power, expertise and resources of the world’s largest business brokerage. At any given time Sunbelt has approximately 14,000 businesses for sale with the ability to electronically match buyer requirements with businesses for sale. Our intermediaries work with you to find the business that best matches your goals and financial requirements, while also providing additional benefits to you as a buyer:
- Sunbelt intermediaries save you time and money.
- Sunbelt intermediary services are usually free for buyers
- Sunbelt protects your confidentiality concerns when buying a business
- Business intermediaries keep the buying process moving.
- Sunbelt has more business for sale listings than any other network.
A detailed explanation of how a Sunbelt Business Broker will benefit you during the selling process can be found in our Buying a Business with Sunbelt brochure.
How can Sunbelt assist me in locating and purchasing a business?
A Sunbelt intermediary will provide you access to thousands of business-for-sale opportunities and then help you identify businesses that suit your business skills and experience as well as financial and lifestyle requirements. Sunbelt will also help you understand and navigate the complexities of the buying process, facilitate negotiations between you and the seller, and oversee the due diligence and closing process.
What are Sunbelt’s fees?
In most cases, your Sunbelt Broker is paid by the seller. As a result, there is little or no direct cost to you to utilize a Sunbelt intermediary. Because of Sunbelt’s market presence and expertise, buyers often engage a Sunbelt intermediary to perform a targeted search for a business not currently for sale but with an owner willing to consider a purchase offer. Under this circumstance, the intermediary is a representative of the buyer and the buyer is responsible for paying his/her fee.
What information do I need to provide in order to learn more about a particular business?
The information you will be required to provide in order to obtain detailed information on a business for sale will vary depending on the size of the business, the complexity and competitiveness of the industry, the disposition of the seller and other factors. For this reason, each and every prospective buyer must provide the following items (at minimum) before receiving additional information on a business that interests them:
- Confidential Business Buyer Profile: This document will help your Sunbelt intermediary evaluate business opportunities that best suit your background, experience, financial and lifestyle goals.
- Personal Financial Statement: In conjunction with the Buyer Profile above, your Sunbelt Broker will require this document to determine business opportunities that suit your personal financial circumstances. This information will also be necessary to structure purchase offers and obtain financing when buying a business.
- Confidentiality and Non-Disclosure Agreement: These documents identify your responsibilities and obligations as a prospective buyer concerning any confidential information disclosed about a business for sale by Sunbelt.
- Credit Check Authorization or Recently Obtained Credit Profile: Sellers frequently require an up-to-date credit profile as a prequalification to disclosing confidential information to a prospective buyer. Furthermore, it will be required as part of a purchase offer that involves any sort of financing or lease agreement.
What are the steps of the due diligence process?
Due diligence is an extensive and thorough process generally broken into three categories of investigation: financial, legal and operational. While your business intermediary can walk you through the steps of the process, we strongly recommend consulting your attorney and accountant for a complete explanation. A sample list of topics reviewed during the due diligence process are listed below: