The BizSales Business Purchase System
A tried and tested system for Buying a Business
The BizSales Business Sale System has been developed in the light of our experience helping Buyers acquire a Business. The system has proved to be an excellent system for ensuring the acquisition of businesses at competitive prices and also for ensuring that the buying company and the company acquired are both financially and operationally well placed to grow.
What Makes Our Business Purchase System Successful?
The success of the BizSales system is based on:
- A comprehensive and methodical approach to flushing out businesses for sale
- Strong investigative and negotiation skills to ensure target businesses are as good as the sellers claim and are purchased at competitive prices
- A wide range of experience of the contractual negotiations, which enables us to produce imaginative solutions to difficult issues.
What Distinguishes BizSales?
BizSales staff have experience and expertise in all aspects of acquiring a business but two factors distinguish our service:
- We number both Marketing and IT experts among our Directors and this gives us the expertise to effectively flush out businesses for sale
- We have expertise and experience of both financially structuring and raising finance for acquiring companies. This is crucial for a successful acquisation. (See next section.)
Needless to say we have strong skills in investigating target companies - we have four qualified accountants among our Directors.
The Importance of Financial Structures
Most business acquisitions are driven by dynamic entrepreneurs who can spot a good opportunity. However, regardless of the business opportunity, for any acquisition to be successful the acquiring company must have the finance in place to carry out the purchase and, equally important, there must be financial facilities in place to finance the current and future operations and capital purchases of the company acquired.
Many acquiring companies will not have sufficent cash available to buy another business and must approach banks or financiers to raise the extra funds required. The providers of funds will wish to see proper financial structures put in place in the acquiring company and in the target acquisition. They will also wish to see a business plan covering both acquiring and target businesses. On the other hand the buyer will wish to deal with a funds provider who will work with the buyer, over a period of years, providing finance for both working capital and capital purchases.
BizSales has the expertise to structure companies financially, to produce business plans and to negotiate with funds providers. We also have good contacts at senior levels in banks and know which banks offer the best mix of finance for different acquisitons.
The Main Parts of the BizSales Business Purchase System
There are many steps during the purchase of a business and the following are only a brief summary.
1. Initial Meetings With The Buyer: To understand the buyer's business and to agree the criteria for selecting the business required.
2. Financing: If appropriate, put in place proper financial structures, work on the production of a Business Plan and help raise finance.
3. Flush Out Sellers: Email all contacts in our extensive database, send personalised letters to targets and contacts, advertise in the media etc.
4. Long list: Carry out preliminary investigations and produce a long list of acquisition targets.
5. Shortlist: Carry out detailed investigations on a short list of acquisition targets.
6. Negotiations: Conduct negotiations with the owners of the preferred target(s) and submit a "Letter of Offer" to the chosen target.
7. Heads of Agreement: Agree the "Heads of Agreement" and conduct "Due Diligence".
8. Legal Agreements: While Due Diligence is being conducted, agree the details of the "Purchase / Share Purchase Agreement" with the seller's solicitors
9. Final Negotiations: Negotiate the final details of the deal in the light of the results of Due Diligence.
10. Completion: In the period prior to completion, both buyer and seller work through the hand-over checklists until the Completion date (or earlier by consent). On Completion day, the remaining items such as keys, alarm codes, supplier lists, recipes etc are handed over, with the balance of the monies.
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