Placing An Offer on a Business

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When you have found a business that suits you, it will come time to place an offer on the business. When the time comes, you will need to ensure that your offer is complete, realistic and likely to appeal to the vendor's requirements.

As such, your offer should include the following:

  • Price

    Your price should be a realistic offer within the right range of the business sale. Be sure to take time to understand the market and the desirability of the location before placing your offer. Also consider your own level of affordability and the level of borrowings that the business can support.

  • Finance Condition

    Consider what finance requirements you may have and list these as a condition of the sale. It may help to consolidate your position by advising the broker how you are placed to succeed in your request for finance for the purchase.

  • Timing of Settlement

    When can you settle the transaction? If you have previous purchases that you can use as examples, cite these to help your position.

  • Due Diligence

    If you wish to conduct an investigation that the figures on which you based your offer are correct, then please advise the seller that you wish to do so. You may also wish to provide a list of information that you require for your investigation along with a time frame that you require to do so to add clarity to your due diligence request.

  • All other conditions

    If you have any further conditions that the sale is subject to, ensure that you include them with your offer.

The more complete your offer, the more quickly your offer can be reviewed, accepted and then move to Contract. As such, it is vital that your offer be considered and complete.

This blog post was originally published at the following link:
Placing An Offer on a Business


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