Buying a business can be a complicated and intensive process. Bray Business Advisors Group creates an efficient and successful process that will help Buyers maneuver through the challenges to a successful acquisition. Having a trusted partner is essential when sourcing, evaluating, and purchasing any business venture.
It is important for Bray Business Advisors to meet with and understand what a potential Buyer seeks as well as the Buyer’s experience, financial capabilities, timing and whether there are additional advisors, accountants, attorneys, bankers, etc. The Buyer should ask all questions they may have regarding our process to find relevant opportunities, negotiate terms and close the transaction.
Bray Business Advisors Group’s goal is to provide the Buyer with screened, quality opportunities that match the Buyer’s criteria for business type, operational involvement, size and profitability. We work with buyers to analyze each opportunity.
Once a business has been evaluated and identified as a promising opportunity, it is important to create a financing strategy. If the contemplated purchase is not an all-cash transaction, a determination must be made as to whether the purchase can be financed. Bray Business Advisors Group will assist the buyer in this process with introductions to private equity, conventional financing, SBA, government funding plans, etc.
Once the Buyer has a specific target acquisition and an accurate understanding of financing viability, it is time to present the Seller with a Letter of Intent (LOI). An LOI is not a binding document. It sets forth the proposed key terms under which the Buyer is offering to acquire the business. Bray Business Advisors work with the Buyer to identify the key points. Typically, the LOI is drafted by the Buyer and/or their attorney. There will be negotiation of the terms of the LOI with the ultimate goal being the agreement of the Buyer and Seller on key deal points.
Once general terms of the LOI are agreed upon, work will begin on preparing the PSA. This document is prepared by an attorney and sets forth in detail all issues to be addressed during the acquisition, due diligence, closing and post-closing process. It is common for both parties to be represented by an attorney, though the Buyer and Seller may agree to use the same legal counsel. Bray Business Advisors role at this stage is keep the transaction moving forward, solve problems and facilitate the due diligence process.
Due Diligence requirements are set forth in the PSA. Typical due diligence requests would include additional financial data, intellectual property, customer lists, material contracts, employment contracts, litigation, corporate documents, environmental issues, leases, key contracts, inventory, etc. We will facilitate these requests and delivery of the requested data.
Once all conditions precedent in the PSA are met, Buyer and Seller should be ready to finalize the transaction. On closing day, all parties will execute any applicable documentation and transfer funds through the appropriate protocol. On closing day there can always be last minute complications. As your Advisor, Bray Business Advisors Group can assist providing resolutions.
Once the transaction has closed, it is essential to have a smooth ownership transition. The post-closing process will typically be defined in the PSA. Bray Business Advisors will assist the Buyer suggesting effective and practical methodologies, structures, and approaches to creating a smooth and seamless transition into the business.