07 Oct The Process for Making 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.