A FEW COMMON QUESTIONS
Q: Do I need an Attorney and a Accountant to buy a business?
A: 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.
Q: I am a resident of another country interested in getting an E-2 Visa, can you help?
A: While the E-2 process is quite complex, Darrell has years of experience specializing in obtaining visas for families of Foreign Nationals. Darrell owns a Immigration company called “Immigration Partners of America” and has assisted families through the E-2, L-1, and EB-5 process. Darrell has even opened several EB-5 Regional Centers as financing mechanisms for some of the nations largest companies. Because of this experience, Darrell now provides businesses to foreign buyers that may qualify for the Visa process.
Q: Where can I go to look at what businesses are available to buy?
A: Go to the “Biz for Sale” search tab and fill in what state, the counties, minimum net income, and what type of business. This search page allows you to look at over 4000 businesses statewide.
Q: What will the process of buying a company cost me?
A: We are generally paid by the seller not the buyer. However, other costs do come into play. Legal and accounting fees are generally required and additional startup costs may also come into play.
Q: Will the current owners train me to run the company?
A: 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.
Q: How do I know hat the profit figures that the sellers claim are true?
A: 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 their profit numbers. You may want to hire CPA/Attorney help with this process.
Q: Will I have to come up with the entire purchase price?
A: No, while 100% of the purchase price is sometimes required, sellers will frequently provide owner financing to some extent. Additionally, a bank may be able to loan up to 80% of the purchase price through a loan sponsored by the Small Business Administration.
Q: How much money will it take to buy a small business?
A: Businesses vary in price a great deal, however, it would be unlikely that one could buy a business with much less of a down payment than $50,000.