Do you already know the process to follow? Buy a business in Florida?
A good Business Broker, or business broker, is a kind of psychoanalyst who must penetrate the most intimate corners of the business subconscious of his clients to determine which business best suits his particular circumstance. That's why I usually start my interviews with potential buyers with two questions: the first, How much do you think you need to live on? and the second, how much capital do you have to invest?
With these two answers, it is already possible to outline a list of companies for sale that are generating a cash flow that satisfies the following conditions:
1. That it covers the operating costs and expenses of the business;
2. That it covers the family subsistence expenses of the owner;
3. That it covers the financial expenses derived from the debt contracted by the Buyer when buying the business; Y
4. That the initial sum invested by the Buyer returns to their pockets within a period not exceeding four years.
Based on these premises, the search narrows and, In the end, it should be concluded in the selection of one or two companies that deserve a detailed analysis by our potential buyer..
How to Buy a business in Florida
As they say that "paper holds everything" it is important at this level to scrutinize the realities of the chosen business starting with a meeting with the owner to learn "loudly" the details of his company. If this meeting is satisfactory for our buyer, then he will want to make an offer to the owner detailing the payment terms that the buyer would be willing to assume.
Once the offer is accepted by the Seller, the parties will enter the process of analyzing the documentation and the portfolio of suppliers and clients. The Seller must open the company's books for examination by the Buyer and must also assist the Buyer in the process of evaluating the various aspects that lead to a good understanding of the particulars of the business. This process, known asdue diligence”, is perhaps the most important of all the steps prior to the purchase, so it is advisable to be accompanied by a certified public accountant.
At this level, the Buyer must examine whether there are labor, tax or environmental liabilities or hidden liabilities; if Seller has overstated revenues or understated costs and expenses; whether the accounts receivable are of good quality; whether inventories are overvalued, expired or obsolete; whether there are harmonious relations between management and workers; if there are litigations or claims in progress that affect the assets and image of the company; if the permits, patents, authorizations are in force; and, finally, the legitimacy of the property titles that may exist.
After the "due diligence” a specialized lawyer will be given the green light to prepare all the necessary paperwork for the closing of the operation. The closing attorney must prepare all the pertinent documents from the invoice of the tangible and intangible assets, to the lease agreement or transfers of credit card or insurance contracts from seller to buyer.
On the closing day, the Seller and his advisors and related parties will meet around a table together with the Buyer and his advisors.. In that single act, the various property rights will be transferred from one party to the other, so from there the Buyer will leave with the key to the business in his hands and the Seller with his brand new check in his pocket.
For both it will be time to celebrate.