We at The Robert Hedges Company try and make the buying process as comfortable as possible with the Buyer and still maintain the proper brokerage relationship between the Broker, Seller and Buyer. See Confidentiality and Relationship Disclosure Agreement. As discussions ensue, it is also very important for the Buyer to understand the process and steps required to complete a change of ownership as generally described below:
Buying Process
Stage 1 – Planning
- Discuss Business interests following initial contact – Broker/Buyer
- Review Relationship Disclosure Agreement, Confidentiality Agreement, Buyer profile form with the buyer – Broker
- Sign Confidentiality Agreement and Brokerage Disclosure statement regarding businesses that will be presented – Buyer
- Complete a Buyer Profile regarding past experience, business interests, locations of interest, financial capacity to acquire a business, future financial needs and any other information that will assist us in qualifying appropriate businesses. – Buyer
- Educate the Buyer on the process required for a change of ownership – Broker
Stage 2 – Marketing
- Review current listings for interest – Broker
- Provide a Confidential Business Summary of the businesses Buyer is interested in analyzing. Broker
- Review financial options and qualifications for buying businesses of interest – Broker/Buyer
- Provide referral sources for professional services related to accounting, legal, appraisal and valuation if desired- Broker
- Arrange a meeting with the Seller and facilitate initial discussions and on-site review of the business – Broker
- Coordinate responses to follow-up questions and/or concerns – Broker
Stage 3 – Negotiations
- Obtain pre-approval for any SBA loan or other types of financing – Buyer
- Prepare and submit Letter of Intent along with a refundable earnest money check – Buyer/Buyer Attorney
- Review buyer financial statement to determine capacity to purchase the business – Seller
- Present LOI to Seller for acceptance, rejection or counter offer – Broker
- Negotiate acceptable offer between Buyer and Seller or terminate discussions – Broker
- Deposit earnest money in trust account when LOI mutually signed- Seller Attorney
- Prepare draft Asset Purchase Agreement (APA) – Buyer Attorney
- Present draft APA to Seller/Advisors and coordinate changes with Buyer/Advisors to reach final agreement- Broker
- Finalize mutually acceptable APA and sign- Seller/Buyer
- Arrange for distribution of the signed purchase agreement. – Broker
Stage 4 – Closing
- Develop list of due diligence items – Buyer
- Develop electronic data room for buyer access to information – Seller
- Develop mutually acceptable due diligence schedule and facilitate on-site inspections and data room access – Broker
- Coordinate resolution of any due diligence issues/concerns – Broker
- Secure final loan approval – Buyer
- Coordinate physical validation of inventory, if needed – Broker
- Facilitate the preparation of closing documents, lease transfers, lien releases (if any) with the Buyer, the Seller, closing attorneys and advisors.
- Close the sale
Resource Center
This resource center is intended to provide the user with further insight into selling or buying a business, provide a means for an interested party to initiate the buying process and to inform the user of our privacy policy for protection of shared information.
If you are an interested buyer and wish to evaluate a particular business, please download the following documents, which are in PDF format, fill in the appropriate information and e-mail the completed documents to rhedges@TRHC.biz.
Required Interested Buyer Downloads
TRHC Buyer Profile (PDF)
Confidentiality Agreement and Relationship Disclosure Form (PDF)
Confidential Buyer Financial Statement (PDF)
Once these completed documents have been received and you are determined to be a qualified buyer for the interested business, we will provide you with a Confidential Business Summary that includes the name, location, and detailed business description; financial summary; asset list; tax and financial statements; and real estate information to help you make a buying decision.