The Buying Process

Utilize Our Proven Process to Buy a Business

Take Advantage of Trusted Mergers and Acquisition Pros in the Hamilton/Niagara Region – At No Cost to You

SB M&A intermediaries have the experience, local market knowledge and resources to help you find and buy the business that best suits your needs. And yes, that’s right… at no cost to you, the buyer. Similar to real estate, the seller of the business is responsible to pay the brokerage commission after a successful business transaction.
You’ll appreciate our methodical and proven approach. It begins by getting an understanding of objectives for business ownership and your goals. As we guide you through the business purchasing process, we promise to keep you up to date every step of the way. You’ll have access to exclusive business listings in the Hamilton and Niagara region as well as those across our North America network. And we can introduce you to a wide network of local business partners should you need additional help to close the deal as quickly and efficiently as possible.

Targeted Business Searches for Buyers

Should you be looking to target a business that isn’t currently on the market, SB M&A also offers fee-based targeted searches to help identify prospective target acquisitions. Even if you’ve already identified a company to target, having an experienced M&A intermediary initiate discussions and negotiate on your behalf increases the likelihood of a successful acquisition. In these cases, a small retainer is charged to offset marketing costs and demonstrate your commitment. Thereafter, our experienced M&A Intermediaries will provide services on a contingency basis that requires a successful close.

It’s Important to Establish a Relationship of Mutual Trust and Respect

SB M&A Intermediaries have developed a process proven that not only protects you as the buyer, but the seller as well. All negotiations are designed to ensure that requests from both parties are reasonable and fair. Understand that it’s important to establish a relationship of mutual trust and respect as it’s common for us to broker deals that incorporate financing from the seller, along with a training and transition period where they work with you for a stipulated period of time. This is a perspective that we’re sure you’ll appreciate at due diligence and closing as we work to keep the lawyers and accountants on track to facilitate the outcome that both parties want.

The Right Steps In The Right Sequence

To protect confidential and proprietary information about the business for sale, you’ll be asked to sign a non-disclosure agreement (NDA) upfront. With that in place we’ll walk you through self-analysis to help you determine the best size and type of business that’ll will work for you.
Then we’ll help you assess the fit of all possible opportunities, helping you understand the real value in the businesses, the nuances of the financial presentations and the difference between original and recast financials.

To choose the right business, you will still need to answer these key questions:

  • Can you see yourself in the business?
  • Is there a sound financial foundation?
  • What are the opportunities and threats?
  • Can you see ways to create value?
  • Will the seller provide financing for a portion of the purchase price?
  • Will you have enough cash—sufficient operating capital in addition to the down payment?
  • There is no perfect business—only some that are better for you than others. The key is to find the right “opportunity” for you to make it your perfect business. SB M&A can help you find and buy that business.

Buying a Business – Making an Offer

Assuming that after reviewing presented documentation, discussions with the business owner, onsite visits – that you find a business that fits you – It’s time to make a conditional, non-binding offer. Yes, before due diligence.
Your offer starts the negotiating process. Regardless of its form – an Offer to Purchase, a Letter of Intent (LOI) or a Memorandum of Understanding (MOU) – it indicates that your seriously considering the purchase of the business and commits both you and the seller to confidentiality.
We’ll help you draft an offer that contains a clause which makes the offer conditional upon structuring the transaction and drafting an agreement of purchase and sale that is acceptable by both parties and their legal advisors.

A Deposit Will Be Required

As proof that your intent is genuine, a deposit will be held by the Broker of Record or the transaction lawyer in trust until an offer is accepted. As business brokers, we are licensed realtors and our trust fund is guaranteed by the province of Ontario.

Negotiating the terms

At this time, we’re more concerned about the terms of the deal than the price. We’ll draw from our experience and pull from an assortment of proven strategies and creative approaches that will serve you well. If you’re like most business buyers, your deal will rely on the seller financing a portion of the purchase price in the form of a loan. Should you require additional capital, rest assured that the SB M&A team is up to date on all current business financing options as well as general lender requirements.

The offer is meant to set out the terms for a legally binding agreement and will:

  • define the closing date along with conditions and timelines to be met before then
  • set expectations regarding the seller’s responsibilities after closing, such as training or continuing employment, etc
  • specify the price that you’re prepared to offer along with terms of how, when, and under what conditions

Due Diligence

At due diligence, in conjunction with your professional advisers, we will provide you with guidance to ensure that you’re getting what you think you are buying as well as direction on closing the deal relating to ownership issues that you’ll need to succeed, including:

  • General Information
  • Organizational Matters
  • Litigation
  • Regulations and Permits
  • Intellectual Property
  • Financial and Accounting Matters
  • Receivables
  • Liabilities
  • Budgets and Forecasts
  • Taxes
  • Material Agreements and Documentation
  • Sales and Marketing
  • Insurance
  • Employee, Deferred Compensation and Benefits
  • Environmental Matters
  • Permits and Licenses
  • Relations with Authorities
  • Miscellaneous

And when you take the keys as the new owner, SB M&A will be there to support you with tips on how to make the business even more successful in the years that follow.

Interested in buying a business? Start the process. Contact us now

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