Most people buy a business, as opposed to starting one, because of the time, money and risk involved with a business start-up. It is an often quoted and a well-published fact that over 80% of all business start-ups fail in the first five years.
Buying an established business has many advantages such as:
- Immediate Cash Flow
- Skilled Employees
- Licensing and permits already in place
- Established Business Trade Name and Reputation
- Established Business Credit and Relationships
- Historical Financial Records
Most buyers contact us after being referred by their attorney, accountant, or one of our previous buyers and/or sellers. Additionally, we receive many inquiries from our numerous business for sale listings on the Internet, local newspapers, and other publications. It is interesting to note that the majority of business buyers purchase a different business than the one they initially inquire about. For this reason, CI’s staff always works with prospective business buyers in a professional, consultative manner. In essence, rather than selling a business, we help people buy them.
If you are interested in exploring the possibility of buying a business through Corporate Investment, please inquire here or call 301-572-6000.
Buyer /Broker Representation
Strategic buyers, interested in expanding their businesses through acquisitions, usually find that when they try to contact competitors about selling, they run into the proverbial “brick wall”. CI’s seasoned staff, with access to local and national business databases, can aid in the search. We can offer a significant value-add by acting as a buyer’s broker. We have had great success in contacting sellers on behalf of potential buyers, and ultimately closing deals.
The Business Buying Process
When a buyer contacts our office to buy a business in Maryland, DC or Virginia, we take time to learn about his or her background, personal goals and financial capability. Using the experience gained over 35 years and 1,400+ completed transactions, we educate first time business buyers to insure that they understand and are comfortable with the business buying process. We insist that all parties involved in the purchase, or sale, of a business understand that all information provided by either buyer or seller, must be kept strictly confidential.
Once we have a buyers information, we can then begin the process of identifying prospective businesses that may meet their criteria. In addition, we inform the other brokers on our staff that we are working with a serious buyer and what type of business they are looking for. Any potential listings that are in the pipeline can then be earmarked for introduction to that buyer as soon as the information becomes available.
Once a business is identified that meets the prospective buyers qualifications, and appropriate confidentiality agreements are executed, the buyer is provided with additional information. After he has had the opportunity to review the information, and determines that he would like to learn more, we set up a time for the buyer to meet the seller. During that meeting, the buyer will have the opportunity to inspect the business and ask the seller questions.
When a buyer decides he would like to initiate a purchase, we begin the offer and contract preparation process. When an agreement has been reached, we assist with solving the multitude of other issues that arise, such as:
- Obtaining or extending leases
- Securing financing
- Completion of franchise applications
- Writing business plans
- Securing landlord, franchisor, or other 3rd party approvals
- The seemingly endless details necessary for the preparation, and scheduling, of a smooth business sale closing.
In the event a buyer or seller needs legal, accounting or other professional counsel, we have extensive contacts with allied professionals experienced in all areas related to buying or selling a business. We are pleased to provide referrals to these experienced professionals, should either party require their assistance.
For more information about purchasing or selling a business, contact us by email, or call 301-572-6000.