At Berkeley Cannon our fee is generally paid by the buyer
, not the seller. 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.
We do have mandates with sellers where they want a different approach, in that case we agree fee’s with them, but this is upon request and only when there is something unusual with a company’s make up, therefore do register as a buyer even if you do not agree to pay fee’s as we have Information Memorandums we can share with you for serious buyers that cannot get around their own corporate methodology or view on things.
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, we 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.
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