How to make an offer on a business

How to make an offer on a business

What is the process if I am interested and potentially heading towards making an offer?(steps to getting ready to make an offer)

Okay, you have been through quite a process so far in looking more deeply at a business you like. You have sought advice perhaps from your accountant, know your borrowing capacity and requirements and have understood the business including a physical inspection and meeting with the owner.

Before you make the written offer:

  • Don’t just make the offer about you or completely one sided
  • Don’t try to steal the business or undermine all the time, effort and perhaps cost you have invested getting to this point
  • If the business is worth the asking price consider a full price offer or make your offer with a supportive comment as to why it is worth the price – if justified
  • Work out what terms and conditions need to be considered with your offer
  • Work out when the business could settle

Making the written offer:

  • Outline the offer in dollars
  • Outline the terms and conditions ie what the offer may be subject to
  • That upon acceptance a 10% deposit can be paid
  • When you propose the sale to be settled

Your broker if one is involved will help and guide you with this process and if not the above will give you a good indication as to what you can do – even with some help from your solicitor.