Do you have questions about buying or selling a business in Charlotte or the Southeastern United States?
We have answers! Browse our FAQs about selling or buying a business to prepare yourself for the business transaction process.
Buying or selling a business can be a complicated venture. While some businesses are sold without the help of accountants and attorneys we strongly recommend that both the buyer and seller engage professionals.
We are typically paid by the seller not the buyer. Legal and accounting expenses may be incurred during due diligence period should you employ professionals to assist you, which we strongly encourage. Closing costs will be incurred at closing.
Absolutely. VR is happy to work with you in this type of scenario.
Depending on the complexities of the business, the former owner will offer varying levels of training. On most small businesses the owner will offer training for two to four weeks at no cost to the new owner. This topic is usually part of the negotiations.
As part of the acquisition process, you will have to go through “due diligence.” During this period the seller is required to present documents to verify the company’s profit numbers as well as any other information you request. Again, VR recommends working with an accountant to assist in this process if necessary.
Usually not. Although 100% of the purchase price is sometimes required, sellers will frequently provide owner financing as part of the structure of the transaction. Additionally, a bank may be able to loan up to 80-90% of the purchase price through a loan sponsored the Small Business Administration (SBA). The business must meet certain criteria to qualify for SBA financing and the buyer must meet certain standards as well.
Businesses vary a great deal in price. The higher the amount of down payment, the more likely you will be in finding a business that meets your needs.