Buyer Services |
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At Berkeley Cannon our fee is generally paid by the
seller, not the buyer. However other costs should be
expected such as legal and accounting fees. We can manage
the search and identification of prospective sellers
and our experience will help you ensure the business
you acquire accurately matches your growth model.
There are a number of stages to consider when buying
a company. Whether you are a national consolidator or
someone setting out to acquire for the first time, our
breakdown of the acquisition process essentially highlights
the things to watch out for:
Step 1: Clarity
You have made the decision to develop your business.
Time and again we have seen companies acquire with no
clear vision of the company they are looking to create.
Businesses are different, as are people and specialities.
Making sure you have a clear idea of the type of company
you are looking for will massively increase your chances
of successfully integrating another company in to yours.
We can help, so be sure to use our experience.
Step 2: Evaluation
We need to understand your business, your background,
your budget and your expectations in the company you
acquire. We will work with you to build a target profile
and once we have this, will search through companies
we have registered with us to identify a suitable fit.
We can provide a more refined search of prospective
companies should you choose to retain us. If this is
of interest then please call one of our team.
Step 3: Education
If this is your first time, then you won't feel comfortable
making a decision until you understand what it takes
to buy a business. We will explain the process and help
you understand the realities of the current marketplace.
You will learn how to review our information memorandums,
what is required to carry out due diligence, what lawyers
and accountants to use and how to effectively structure
a purchase.
Step 4: Search
We will help you search for your business, aid you in
signing confidentiality disclosures, get you detailed
information on the business, and set up meetings with
the seller. We will refine your business search and
the companies we send to you until you decide on a business
to purchase. If your search takes longer than a few
months, you may need to return to the education step.
Step 5: Offer
We will share with you our expertise in deal structure,
by helping you draft a contingent offer on a business
that you would like to buy. A ‘heads of terms’ agreement
will be presented to the seller, occasionally with a
deposit of good faith held in escrow to demonstrate
your seriousness. After any negotiations, you should
be left with an executed contingent purchase agreement
to buy a business.
Step 6: Due Diligence
This period is where you fully inspect the owner's representations
are accurate. We will coordinate the efforts of your
legal and accounting professionals and strive to satisfy
all contingencies. If there is financing involved your
application must be approved by the lender, proving
that you are qualified for repayment of the loan.
Step 7: Closing
Final preparations will be made for lease assignments,
utility transfers, financing, merchant service accounts,
inventory counts and any other last minute preparations
to make the transfer as seamless as possible. Your acquisition
will usually be completed by your legal council with
the signing of several documents and the payment of
the balance of the purchase price.
Step 8: Post Closing
Transitional training by the seller may include meetings
with employees and clients, technical education, computer
updating, and other essential knowledge transfer. We
will be available to assist you with any questions or
post closing requirements you may have. Remember what
you have learned throughout this process, because when
the time comes, Berkeley Cannon will still be here to
help you sell your business.
Many additional questions may arise during the buying
process. Please do not hesitate to have us explain in
detail any portion of this process.
