Buyer Frequently Asked Questions
1. Why do I have to sign a Non Disclosure Agreement (NDA) before getting information about a business?
This is done to protect the sellers business. Most owners do not want their employees, customers or competitors to know they are selling.
2. Why do I have to fill out a financial statement?
We only show listings to buyers based on their financial readiness to enter into an agreement.
3. What are my financing options?
SBA Guaranteed Loans - Many local and national lenders offer loans for the purchase of a business. These loans are guaranteed by the Small Business Administration (SBA) and are typically amortized over an 8 to 10 year period.
Seller Financing – Transactions may also involve a combination of Seller Financing and a SBA loan.
4. What is due diligence and who does it?
Due diligence happens after an offer has been made and accepted. The buyer acquires information and can conduct further analysis to determine whether or not to proceed with the transaction.
5. Should I hire an attorney or CPA?
It is a good idea to retain a business attorney and CPA for any legal or tax questions. Business advisors have general knowledge but are not licensed to give advice on tax or legal matters.