FAQ on buying a business
How much will the process of buying a business cost me?
RBG Inc. is generally paid by the seller not the buyer. However, other costs do come into play. Legal and accounting expenses may be incurred during due diligence should you employ professionals to assist you. Closing costs will be incurred at closing. It's important to note that using a business broker when buying a business will result in a better purchase price.
Will the current owners train me to run the business?
Depending on the complexities of the business, the former owner will offer varying levels of training. On most small businesses the owner will offer training for two to four weeks at no cost to the new owner.
How do I know that the profit figures that the sellers claim are true?
As part of the acquisition process you will have to go through “due diligence.” During this period the seller is required to present documents to verify his profit numbers as well as any other information you request.
Will I have to come up with the entire purchase price?
In most instances, no, While 100% of the purchase price is sometimes required, sellers will frequently provide owner financing to some extent. Additionally, a bank may be able to loan up to 80% of the purchase price through a loan sponsored the Small Business Administration (SBA). The business must meet certain criteria to qualify for SBA financing and the buyer must meet certain standards as well.
How much money will it take to buy a small business?
Businesses vary a great deal in price. The higher the amount of down payment, the more likely you will be in finding a business that meets your needs.