Buying A Business
Your Trusted Partner
Our mission is to provide you all the information you need to maximizing the value when
buying or selling a business.
Get in Touch
- (206) 703-3555
- [email protected]
- Seattle, WA 98199
Business Acquisition
While embarking on the unique journey of building something from the ground up can be an unparalleled experience, opting to purchase an existing business often proves to be a swifter and more efficient path towards achieving your goals.
As a first-time buyer, it’s crucial to assess the business based on its risk and return on investment. Beyond the purchase price, there are significant costs often overlooked in the excitement of the transaction. Ensure you have ample reserves to cover initial expenses, cost of goods, overheads, payroll, vendors, and potential fluctuations in sales. A general rule is to have at least 25% of the annual sales (3 months average) as working capital after acquiring the business.
Before proceeding with a purchase, honestly evaluate whether you possess the necessary skills specific to the business and the dedication to invest the required time. A broker can guide you through the entire process, shedding light on steps that might otherwise go unnoticed. Relying on an expert to secure your dream opportunity is wise, as it minimizes the risk of costly mistakes. Reach out to us today to discover why having Washington Business Brokers by your side will work to your advantage.
Start from scratch or buy an existing business?
While embarking on the unique journey of building something from the ground up can be an unparalleled experience, opting to purchase an existing business often proves to be a swifter and more efficient path towards achieving your goals.
What kind of business?
The health of a business for sale doesn’t solely determine its suitability for you. While a thriving business might not align with your expertise and aspirations, a struggling one could present an ideal chance for a qualified individual armed with the right knowledge and innovative ideas. The key lies in identifying a business that harmonizes with your experience, where your talents can flourish, and which complements your desired lifestyle. That’s where the best opportunity for you to buy truly lies.
Why choose Washington Business Brokers
At Washington Business Brokers, our seasoned specialists will be your guiding agents, ensuring you receive comprehensive information on the business you’re interested in exploring. An ethical broker will be upfront about any vital aspects you might overlook during the process. We will carefully walk you through the business acquisition journey, acquainting you with all the necessary requirements, and encouraging you to conduct your due diligence independently. Our mission is to empower you with the knowledge and support needed to make informed decisions throughout the entire process.
Frequently Asked Questions
Explore our comprehensive frequently asked questions section to find clear, expert insights into the process of purchasing a business. From due diligence to negotiations, we've got you covered!
In order to protect the confidentiality of the business sale, the Seller intends to share confidential information exclusively with “serious and qualified” individuals. While a prospective Buyer may display seriousness, their qualification depends on having the necessary funds to procure the business. The Seller prefers not to disclose any information to parties lacking the financial capacity to make the purchase. As such, requesting proof of funds is a reasonable and justifiable requirement.
The Non-Disclosure Agreements may appear one-sided, seemingly lacking protection for the Buyer.
Confidentiality is vital in all business sales. It’s crucial not to disclose the sale to employees, vendors, or customers until the transaction is completed. Prospective buyers must understand and respect this necessity. Adherence to the conditions of confidentiality and not bypassing the Broker is mandatory for all potential buyers until a formal offer is made. Apart from this, there are no other obligations. If you decide not to proceed with the purchase, you will not receive further communication from us, provided you do not disclose the specific business’s availability.
In certain cases, we may request proof of identification from prospective buyers. Non-Disclosure and Non-Circumvent Agreements carry significant weight, as reckless disclosure of business information may lead to legal consequences and harm to the business. Hence, it is of utmost importance to treat these agreements seriously and responsibly.
No, the Seller of the Business is solely responsible for paying all commissions to the Broker who has listed the business for sale.
In the case of most small businesses valued at under $500,000, binding offers are typically made through an ‘Asset Purchase Agreement’ instead of a Letter of Intent (LOI).
When the Buyer offers the asking price for a business, it is customary to include a 10% deposit along with the offer. However, if the Buyer proposes an amount lower than the asking price, providing a higher deposit check can be advantageous as it demonstrates seriousness and encourages the Seller to give the offer due consideration.
Business Brokers do not function as lenders, and the majority of small businesses for sale may not meet the criteria for an SBA loan. Any financing a Buyer seeks will primarily rely on their personal creditworthiness, with personal lines of credit, home equity loans, or savings being common avenues for acquiring the business. In many cases, the Seller may provide financing by carrying a note and participating in a portion of the transaction. For most small businesses, if Seller financing is available and terms are negotiated, the Buyer is typically expected to make a down payment ranging from 50% to 70% of the purchase price.
Schedule Your Initial Discovery Consult
We welcome the opportunity to connect with any business owner who is thinking about buying or selling a business.