The 20 Step Buying Process

1. Commitment. Your commitment to purchase a business at price and terms consistent with the marketplace.

2. Disclosure. You sign an agreement promising to maintain confidentiality for all the information provided to you on the businesses we discuss.

3. Background Information. You provide us with the information about yourself, such as a resume and financial statement. The more we know about you, the more likely we can find a business you will like. And, the more information we provide to the seller, the better the terms he will consider.

4. Review. You and a RIS broker review the businesses you are interested in and discuss the important factors of each.

5. Showing. Your RIS broker sets showing appointments on the businesses you are interested in.

6. Meeting. Probably a meeting among you, the seller and the RIS broker. This gives you the chance to ask detailed questions you may have about the business, and to describe your qualifications to the seller.

7. Offer to Purchase. You write, with our assistance, an offer for the business you like.

a. Earnest money is required to demonstrate your seriousness to the seller.

b. Most offers are contingent upon your inspection of the books and records of the business. And the offer is not binding until you remove all contingencies.

8. Present Offer. We present your offer to the seller.

9. Background. We give to the seller the buyers background and financial information, buyers experience and point of view in arriving at the offering price, plus terms and conditions. Favorable background information about the buyer will result in consideration of the buyers offer.

10. Explanation. We carefully explain the terms and conditions of the offer to the seller and decision makers.

11. Acceptance. The seller accepts the offer as it is written or writes a counter offer.

12. Mutual Acceptance. When buyer and seller agree to all terms and conditions of the sale, the offer becomes a Purchase and Sale Agreement or the basis for an agreement.

13. Inspection. Buyers meet with the sellers to examine the financial records of the business. Any questions you have are resolved.

14. Contingency Removal. Buyers remove all contingencies in the agreement. It is now a binding agreement.

15. Lease Assignment. Work with the landlord to get an assignment of the current lease or a new lease for the buyer.

16. Escrow. Provide all necessary documents to the transferring agent so they can prepare the closing papers.

17. Lien Search. In most states, the escrow attorney performs a lien search on the business to identify any secured creditors.

18. Note and Lease Assumptions. Make arrangements to assign any notes or equipment leases.

19. Inventory. Arrangements are made for the buyer and the seller to count and price the inventory (if required).

20. Closing. All parties meet to sign documents.