Novare Business Advisors provides a step-by-step approach for the acquisition of a business.
While every acquisition process is unique, here is an overview:
Buyer Qualification
Understanding the buyer’s objectives and buyer requisites.
Completion of an individual or corporate financial statement and a Buyer’s Personal Profile
Search
Develop search methodology with buyer, targeting segments of the industry or specific companies as desired.
If desired, actively search for potential target companies.
Reviewing Potential Businesses
Completion of Buyer’s Confidentiality and Warranty Agreement.
Secure and present Confidential Memorandum or marketing packages from a selected business(es) for buyer review.
Pre-qualify buyer for appropriate financing.
Negotiations
Meet business owner and tour site.
Facilitate the negotiation process.
Assist buyer in preparing the Letter of Intent.
Facilitate the fine-tuning of the Letter of Intent between buyer and seller.
Connect buyer with attorney: create Purchase Agreement.
Buyer arranges financing as needed.
Facilitate final negotiations on Purchase Agreement between buyer and seller.
Execution of Purchase Agreement.
Due Diligence
Buyer completes Due Diligence and all outstanding issues.
Buyer financing is finalized.
Set closing date.
Review closing documents.
Closing
Sign Definitive Agreement (and corollary documents) necessary for closing.
