Do you dream of owning your own business?

Buying a business can be a complicated procedure

From finding the right one to working out all the details required for a smooth transfer of ownership.

While there is no such thing as the “perfect” business, a business broker knows the importance of finding one that fits your needs, talents, skills and lifestyle. A business broker has many different types of businesses for you to consider and the knowledge and experience to walk you through the entire process.

Below you will find our confidential buyer registration form. Once executed a member of our team will reach out to schedule your acquisition strategy call.

Confidential Buyer Registration Form

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Should I use an attorney while buying a new business?

Ultimately, the final decision rests with you. Taking the leap from considering business ownership to actually being a business owner is a personal choice that only you can make.

Having an attorney review the legal documents may be a prudent step to take. It is crucial, however, to ensure that the attorney you engage is familiar with the intricacies of the business buying process and has the availability to handle the necessary paperwork promptly. If the attorney lacks experience in business sales, you could end up paying for their learning curve. Most business brokers maintain lists of attorneys who possess expertise in the business buying process. An experienced attorney can provide valuable assistance in ensuring that all the necessary details are handled correctly. It's important to note that business brokers are not qualified to offer legal advice.

While your attorney will prioritize safeguarding your interests, it's essential to consider the seller's interests as well. If the attorney goes to extremes in protecting your interests, the seller's attorney may advise their client against proceeding with the transaction. It is vital for the transaction to be fair to all parties involved. Remember, the attorney works for you, and you should have a say in how the process unfolds.

How do I find a reputable attorney and accountant?

If you do not already have trusted financial and legal counsel, Exit Strategy Group has wide web of experience attorney and accountant contact that we’d be happy to refer you to.

How can I buy a Business while on an E-2 Visa?

It is complicated but possible! The E-2 visa process can be intricate, and it is advisable to seek assistance from a specialized consultant to navigate through it successfully. At XSG, several of our agents have extensive experience in handling numerous E-2 transactions. They can offer valuable guidance and support to help facilitate your progress throughout the process. While we recommend engaging a visa consultant, our knowledgeable agents can provide sufficient assistance to help you move forward with confidence.

How do I search for businesses for sale?

There are a lot of other websites that have businesses for sale. If you find any business for sale, any of our XSG representatives can contact the seller or other broker of any listing you’re interested in on your behalf. We can set up weekly searches that will email you whenever a listing pops up that matches the criteria you’re looking for.

How do I find the business that fits me?

The importance of due diligence cannot be overstated. Before purchasing a business, it is crucial to thoroughly understand every aspect of the business and ensure that it is a suitable fit for you. The truth is, if you don't have a genuine passion for your business, its growth will likely be hindered. Owning and growing a business demands significant time and effort, and if you do not derive satisfaction from owning and operating the business, achieving success becomes much more challenging.

Even after conducting a comprehensive evaluation of your skills and interests, finding the right business for you remains a complex process. After all, why would you want to own a solid business with great growth potential if you would dislike running it? Collaborating with brokers and M&A advisors can be immensely beneficial in discovering the business that aligns with your needs, personality, and goals. These professionals serve as invaluable allies throughout the process of finding the ideal business for you.

What do I need to look for in a good business opportunity?

Avoid rushing into a business acquisition. Instead, conduct a thorough evaluation of every aspect of the business and carefully consider how owning it will impact your life and long-term financial prospects. Taking the time for careful assessment is crucial for making an informed decision.

Before finalizing any deal, it is crucial to address the question of overall business performance. This encompasses various factors, such as the owner's workload, the presence of a manager overseeing operations, overtime payment for employees, whether employees are reaching their full potential, and other relevant considerations. Obtaining answers to these questions will provide you with a clearer understanding of what to anticipate if you proceed with the business purchase.

Another vital aspect is comprehending the financials of the business. It is imperative to review profit and loss statements, balance sheets, income tax returns, and other financial documents. Leave no stone unturned when examining this crucial information. Importantly, if you encounter inaccurate financial data, it is wise to steer clear and explore other opportunities.

Understanding the demographics of your potential customer base is essential for understanding the business itself. If the current owner lacks this understanding, it indicates a significant issue. It should be evident who the customers are, why they remain loyal, and how you can attract and retain them in the future. Ultimately, your business revolves around satisfying customer needs.

What happens once I find a business I want to buy?

When you identify a business of interest, the business broker will promptly address many of your inquiries or conduct further research to provide you with the necessary information. Once your initial questions are answered, the typical next step involves the broker preparing an offer based on the price and terms you deem suitable. This offer is typically contingent upon your review and approval of the actual financial records supporting the figures provided to you. The primary purpose of the offer is to determine whether the seller is willing to accept the price and terms you have proposed.

If you and the seller cannot reach an agreement on the price and terms, further discussions may be futile. The offer is then presented to the seller, who can choose to accept it, reject it, or counter it with their own offer. Ultimately, the decision rests with you to accept the seller's counter proposal or reject it and explore other business opportunities.

If you and the seller come to an agreement on the price and terms, the next step is for you to conduct due diligence. The responsibility falls on you, the buyer, to thoroughly investigate the business. You may opt to engage external advisors or conduct the due diligence independently - the choice is yours. Once you have diligently assessed and approved the areas of concern, the necessary closing documents can be prepared, leading to the successful completion of the business purchase. Congratulations, you will now join the ranks of self-employed individuals who have made a similar decision!

Why can’t I know the name of the business being sold?

To ensure the integrity and seriousness of prospective buyers for a business listing, it is necessary for them to demonstrate their trustworthiness. This is typically done by signing a Non-Disclosure Agreement (NDA) before gaining access to confidential documents and information. In many instances, buyers may also be required to submit a Proof of Funds to the business owner's broker. This step is taken to ensure that only qualified buyers, who possess the financial capacity to proceed with the purchase, are granted access to the business's financials. By implementing these measures, the confidentiality and security of sensitive information are maintained, while also ensuring that only genuinely interested and capable buyers are provided with the necessary details.

How is the business’s listing price determined?

The pricing of businesses is primarily based on a multiplier of earnings, with Seller's Discretionary Earnings playing a significant role in determining the value. However, several other factors can impact the value of a business. These factors may include the industry in which the business operates, its longevity, profitability, employee structure, asset base, location and lease terms, equipment condition, quality and diversity of accounts, clarity of financial statements, presence of patents or intellectual property, and the overall state of the economy.

The seller and the business broker come together to look at comparable companies for sale and come up with a fair listing price based on the above factors.

When do I view the business listing’s financial documents?

To ensure the confidentiality of the business sale and protect the sensitive information contained in tax returns and financial statements, we follow a careful process. Initially, we provide a summary of the financials and a business profile to qualified buyers when they express interest or when they request a meeting with the seller. This allows buyers to gain an overview of the business before proceeding.

After the initial visit, we make the detailed financial information available for viewing to interested buyers who are considering making an offer. This allows them to review the necessary documents in a controlled environment.

Once an offer is accepted, the process enters the due diligence phase. During this stage, the buyer is granted access to complete and detailed copies of all the requested financial statements. This comprehensive information enables the buyer to conduct a thorough examination of the business before finalizing the transaction. We prioritize the security and confidentiality of all financial data throughout this process.

How will I know if the business’s financials are true?

Buyer’s will need to enter a Due Diligence period where the Seller will provide you with legal documentation that proves their companies’ finances.

How are Net Income, Cash Flow, and Discretionary Earnings different?

Profit: Typically, profit refers to the remaining amount of money after deducting all expenses from the revenue generated by a business.

Cash Flow: Cash flow encompasses the total inflow and outflow of money in a business. It considers not only the profit but also factors in various elements such as owner benefits, interest payments or receipts, depreciation, amortization, and more. It provides a measure of how much cash the business generates, which may differ from its operational profit.

Discretionary Earnings: Discretionary earnings include owner benefits, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and any expenses that are specific to the current owner and may not apply to the new owner. For example, the current owner might have higher office expenses or lease a vehicle that the prospective buyer doesn't intend to use. The definition of discretionary earnings can vary based on individual circumstances.

XSG follows a standard practice of recasting financial statements when presenting a business listing to potential buyers. This allows for an "apples-to-apples" comparison and minimizes potential misunderstandings during the due diligence phase after an offer is made.

What happens to the employees when I purchase a business? Will they stay?

Employee retention is often a major concern for buyers, but it is typically not a significant issue. The majority of employees value their jobs and have a desire to continue working. When they are treated well and guided by enthusiastic and proactive management, employees are more likely to remain with the business. However, if employees are mistreated, faced with unreasonable demands, or experience drastic wage cuts, their satisfaction may decline, leading them to seek alternative employment opportunities.

Will I need to have the entire purchase price ready upfront to submit an LOI?

No, it is not always necessary for buyers to pay the full purchase price upfront. In many cases, sellers are willing to offer owner financing, where they finance a portion of the purchase price. Furthermore, buyers may have the option to secure a bank loan sponsored by the Small Business Administration, which can cover up to 80% of the purchase price. These financing options provide flexibility and support for buyers in acquiring the business.

Who will train me on the new business protocols and practices?

The duration and extent of training provided by the former owner will depend on the intricacies of the business. In the case of most small businesses, the owner typically offers training ranging from two to four weeks, and this training is typically provided to the new owner at no additional cost.


1150 Pelican Bay Dr Daytona Beach FL 32119





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