We’re here to support you.
Ready To Buy a Business?
Many people dream of owning their own business, working for themselves, and reaping the rewards for their hard work. If owning your own business or expanding your business portfolio is a goal of yours, we are here to help. Finding the right business to purchase can be challenging and usually takes time, patience and sometimes tenacity. As trusted specialists with over 50 years experience, over 1,000 successful business sales completed, and extensive financing resources we are experts and ready to guide you through this process.
Click the link below to schedule a no cost consultation with one of our award-winning Brokers.
Can WCI Business Brokers assist with the purchase of a business listed with another broker?
WCI Business Brokers has assisted many buyers over the years with the purchase of a business listed by another broker. Often times, years of financial planning takes place prior to a business purchase, therefore, it is important for a buyer to engage an experienced and reliable Business Broker to assist with the transaction. WCI Business Brokers is a trusted resource when seeking an expert in the industry.
What is the process of buying a business?
The process of buying a business typically involves several steps which include:
- Determining the buyer’s needs, talents, skills
- Evaluating the buyer’s financial needs and desired location(s)
- Locating a business of interest within the buyer’s criteria
- Analyzing the marketing package and historical financial documentation of the business
- Scheduling a meeting and site visit of the prospective business
- Negotiating the terms of the purchase
- Determining how the transaction will be funded and assisting with the financing
- Satisfying the various contingencies which are appropriate for the purchase transaction
- Closing the transaction.
WCI Business Brokers takes pride in being one of the only business brokerages that offers expertise in both business sales and acquisition financing options.
How long does it take to purchase a business?
The timeline for purchasing a business can vary depending on several factors, such as locating the right business for the buyers needs and desires, agreeing on the terms of the transaction, gathering, and providing necessary personal financial data for submission to the lender, fulfilling the contingencies of the purchase agreement, and funding and closing the transaction. Once the Buyer and Seller have entered into a purchase agreement for the sale of the business, a business only transaction typically takes 30-60 days to close.
If the business sale includes the sale of real property, the transaction will typically to 60-90 days to close. The experienced team at WCI Business Brokers assists buyers and sellers in navigating the complexities of the acquisition including the financing needs of the transaction, while allowing the seller to focus on their business operations until closing and aiding the buyer in preparation for their upcoming venture.
Can WCI Business Brokers assist with the purchase of a business which includes commercial real estate?
WCI Business Brokers are licensed real estate agents and have the authority and expertise to sell commercial real estate. Historically, 25% of the transactions WCI Business Brokers have closed, included the sale of the real estate along with the sale of the business.
When buying a business, how does the buyer learn the business after the acquisition?
Generally speaking, the purchase contract includes a provision for the seller to train the buyer on the particulars of the business. This is generally referred to as “familiarization” and can range between a few weeks to a few months for onsite familiarization plus several months to a year of telephone familiarization. This is typically negotiated during the offer and acceptance period and is usually based on the needs of the buyer and the complexity of the business operation. Every business is different and therefore, in some cases, the familiarization includes employment of the seller for many months or even years to ensure a smooth transition of ownership to the buyer.
Can a buyer obtain financing for a business purchase?
In addition to specializing in business acquisition transactions, WCI Business Brokers is one of the only brokerages that also specializes in assisting with acquisition financing as well. The team includes a dedicated loan coordinator to assist buyers through the process, to ensure no detail of the transaction is left incomplete. Typically, business acquisition financing requires a minimum down payment from the buyer of 10% of the project cost, which may include loan fees, appraisal, and valuation costs as well as escrow fees. Part of the financing qualification includes the financial evaluation of the business and its ability to pay for itself, as well as the qualification of the prospective buyer. Unlike home or auto financing, a business acquisition is the purchase of an income producing asset, therefore the business needs to demonstrate its ability to repay the acquisition financing used to purchase the business. Contrary to what most people assume, the buyer’s current income rarely affects the buyer’s ability to obtain financing for the business they want to purchase. Often times, the lender will also require collateral from the buyer which may include a lien on the buyer’s home. Ideally, a prospective business buyer, who is ready to purchase a business, should be credit worthy, have liquid or liquidate-able down payment funds and prior experience which is transferable to the industry in which the prospective business is in.
Why does a business owner want to sell a business?
Whether a seller is seeking retirement, looking to slow down their pace or in a position where they need to sell their business due to life changes or personal circumstances, WCI Business Brokers is here to help! Oftentimes, a business owner will meet with a Business Broker to strategize their exit plan. Their goal may be within the next few months to a year or even three to five years. WCI Business Brokers evaluates the business, including the historical and projected financials and provides the business owner with a concise plan to sell their profitable business.
What is Blue Sky in a business transaction?
A business is often valued based on several aspects. This does not include just the equipment, inventory, or customer base of the business. There are many nontangible assets or “blue sky” which bring value to a business. The non-tangible assets often include the trade name, history of the business, reputation, and intellectual property. These are all factors which play a part in the valuation, beyond the revenue that the business generates.
What area does WCI Business Brokers serve?
WCI Business Brokers serves the entire state of Arizona, and in some circumstances, can assist buyers and sellers outside of Arizona. Contact the WCI Business Brokers office to discuss your needs today.
Let WCI Business Brokers Be Your Guide
Contact us today for a free and confidential consultation and start your journey towards business ownership.