If you want to do it right, several steps are involved.
- Initial Consultation by a KR Business Broker
- To help analyze your skills, interests and financial needs
- Selection of Businesses Best Suited to Fit Your Needs
- KR Business Brokers has a wide range of businesses for you to select from
- Review Business Summary
- Basic Information about the Business
- Valuation of Business
- Tours of Selected Businesses
- Tour businesses to meet Seller(s) and understand the complete business opportunity.
- Always be accompanied by a KR Business Broker
- Second Consultation with a KR Business Broker
- Discuss visited businesses as to your likes, dislikes and concerns
- Review financial summaries of businesses toured that appeal to you
- Meeting / Conference Call with Seller & Broker
- Ask Probing Questions
- Confirm that the Business is right for you
- Make Proposal with Earnest Money
- Generally 5% of the purchase price
- Earnest money held by Escrow Company
- Contingencies and conditions in offer may include:
- Proof of sales and expenses
- Training period from the Seller
- Covenant not to compete (time and area)
- Approval of franchise agreement
- Obtain an adequate lease
- Approved of 3rd Part Financing
- Earnest money refunded to you if contingencies are not realized
- If you are satisfied with the business, your earnest money simply will become part of your
- initial investment in the business
- In Depth Inspection of the Business ("Due Diligence")
- Review financial information provided by Seller
- Check furniture, fixtures and equipment
- Remove contingencies and approve Authorization to Close
- Request to Open Escrow, Prepare Documents and Conduct Searches
- Request made only after Authorization to Close is approved
- Additional Deposit to Open Escrow, generally 50% of total down payment less Earnest Money
- Buyer and Seller share closing costs which range from $500-$1,000
- Review all documents
- Inventory Approved by Buyer and Seller
- Inventory to be counted by Buyer and Seller prior to closing
- Closing - Congratulations you are now a business owner!
