Once you have determined you want to run your own business, schedule an appointment to meet with a LINK, formerly Klemms business broker. The broker that you meet can show you any of the businesses that we have for sale and they will be your primary point of contact with LINK, formerly Klemms.
During your appointment with the broker you will be asked a series of questions to help them understand what type of businesses they should show you.
Know how much money you are working with. Be open with the broker so they know what businesses to show you.
Have an open mind when looking at a business. There are so many different types of businesses that you may not even be aware of.
Be prepared to sign a confidentiality agreement commonly referred to as a CA. The CA ensures that the confidential information provided by the Vendor is kept discrete and legally protected against any misuse. Business Brokers are usually required by Vendors to have this agreement signed before providing confidential details about the business.
Once you determine you have an interest in a particular business the broker will arrange a meeting with the Vendor for you to inspect it.
After your meeting with the Vendor your broker may ask if you would like to proceed to the next step in purchasing the business. By now you may have seen the financials and be prepared to make an offer. If all the books and records have not been made available, you may still place an offer on the business and request that those items you would like to see be produced through the process known as "due diligence".
If you wish to proceed you will be asked to sign a “Heads of Agreement” which is a conditional offer of purchase and to place a holding deposit on the business. This initial deposit is typically 1% or $1,000 whichever is greater. This payment is held in trust by LINK, formerly Klemms.
The Klemms broker will present the offer to the Vendor, if the Vendor accepts your offer then you will move into the due diligence phase where you will have a chance to thoroughly review the items you requested. At this stage of the process the business is taken off the market and reserved for you. If you are not satisfied with the information provided during the due diligence process, you have the right to withdraw from the transaction and receive your deposit money back.
During the due diligence period, the broker will start drafting the prescribed Contract of Sale, a legally binding document, the Contract of Sale is sent to both you and your solicitor for review.
Once the Contract of Sale is agreed to it will be sent to the Purchaser and Vendor for signing.
On signing of the contracts, the balance of the deposit is required which is usually 10% or $10,000 whichever is greater. This payment is held in trust by Klemms Business Brokers.
After signing of the contracts, the Purchaser applies for the transfer of the lease of the premises and any other relevant permits and licences and checks the assets to ensure that everything has been correctly included.
The balance of the final sale price is payable by the Purchaser to the Vendor at settlement.