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Buying
a business is a major decision!
Maybe
you are tired of the corporate rat race, or have always
dreamed of owning your own business or perhaps have the fire
of an entrepreneur. Owning
and growing your own business is a tried and true path to
financial independence. But,
statistics show that for businesses started from scratch, only
one in five survive three years.
Starting a franchise increases these odds dramatically
but you still have the headache of starting from nothing and
little, if any, income for many months.
We
at The THOR Group are advocates of finding a business that you
like and feel comfortable managing.
You, like every other prospective buyer, have a vision
of being your own boss and calling your own shots.
An old saying in the real estate industry is … “The
three most important things a buyer should look for are location,
location & location.”
While location is important to a business buyer, be
aware that track record and management round out
the three components of a successful business.
Let us assume that you find a business that you like,
and its location is fine, but because of poor management, the
business may not show the greatest record of accomplishment.
Purchased for the right price and terms, this business
could become more successful with proper management making it
a good way for you to achieve your vision of being in business
for yourself.
Unlike
the sale of real estate or franchises, the sale of an ongoing
business is very confidential for both the seller and the
prospective buyer. All
inquiries are held in strict confidence. Meetings are
confidential, and we are available after hours and on
weekends.
A
big advantage in buying an ongoing business is that you, as
the new owner, have an immediate cash flow and an established
customer base. You
do not have to build a business; you simply take over an
existing, successful business with the present owner’s
assistance. If you
are ready to take this step, The THOR Group, LLC can help.
Below are some of the major services we offer to the
business buyer.
Consulting
on the Entire Process of Buying a Business
The
THOR Group offers a no-cost, no-obligation consulting meeting
to fully explain the details of buying a privately held
business. We will
discuss the possible options available to you depending on
your goals and objectives.
You will come away from this session armed with the
information necessary to make your decision to buy and, if so,
the best approach to take.
Assistance
in the Purchase of a Business We Represent
The
THOR Group, through its network of affiliates, has access to
hundreds of businesses that are currently offered for sale.
If one of these businesses matches your profile, we can
assist by obtaining confidential information, arranging
visits, preparing offers, negotiating, and addressing the
myriad details that must be dealt with in order to purchase a
business. In other
words, using our experience, we manage the process of buying a
business.
Buy-Side
Consulting
Outside
of our network of affiliates, there are many more hundreds of
businesses that may provide a great fit for you and your
requirements. Most
of the time, the best businesses are sold before they are ever
marketed to the outside community.
In essence they are pre-sold.
The business intermediary who is representing the
business already has a list of qualified, aggressive buyers
before the business is brought to market.
The key to getting on this list is to be a Buy-side
client. The THOR
Group can market you aggressively but anonymously to the
brokers and intermediaries in your area of interest.
Once you get access to these businesses, we will stay
with you through the entire buying process.
Targeted
Search for the Right Business
Maybe
it is that great business you drive by everyday or perhaps you
read about a company in a great industry that happens to match
your skill and interests.
Why not buy one of these businesses rather than one
that happens to come onto the market? Well, for two good
reasons. One, the
business is likely not for sale and two, if it is, the owner
will likely want a big premium.
The solution to this dilemma is to widen your search.
It has been estimated that nearly 20 percent of
businesses change hands in any given year.
Contact enough businesses and you will find an owner
who is ready and willing to sell – especially to the right
buyer.
The
THOR Group has a huge database of businesses in the
Baltimore-
Washington
–
Northern Virginia
region. We sit
down with you, map out a search strategy, and find those
businesses that precisely match your interests, skills,
experience and financial resources.
With your approval, we contact these businesses and
find that 20% that are open to the possibility of a sale.
Again, with your approval, you meet with the owners
that best fit your requirements and decide what business(es)
to pursue. From
there, The THOR Group works with the owner to prepare the
required documents and financials according to our established
process so you can properly evaluate the business and prepare
an offer. From
there, we manage the purchase process on your behalf.
Manage
the Process of Buying a Business
Depending
on the situation, the process of buying a business may include
all or some of the following:
Evaluate
the non–confidential information on available businesses
that sound interesting to you.
After meeting with a representative of the The THOR
Group, evaluate the confidential business information provided
and, as arranged by The THOR Group, meet with the Seller.
Ask questions on everything and anything, except actual
price and terms issues.
Do
your preliminary evaluation, based on the information provided
by the seller to The THOR Group and you.
Make
an offer, assuming that all of the information you have been
provided is correct, but include contingencies,
which allow you to confirm such information.
The THOR Group will show you how to write an offer
to protect you as the buyer.
Once
a sales price is agreed upon, make a closer investigation of
the business (also called Due Diligence), confirming to your
satisfaction the validity of your offer.
Have
documents prepared for the closing.
You may agree with the seller to share the cost of
a closing attorney. This
lawyer will not argue the position for either party, but
drafts all necessary legal documents to comply with the
agreement a buyer and seller have reached.
Close
the purchase, and begin your first day as the owner of your
own business. The seller will assist in an orderly
transition because most of his money is coming from your
success.
Assistance
in Obtaining Financing
In
need be, we assist you in obtaining financing.
Banks are reluctant to finance business purchases for
good reasons. First,
all small businesses attempt to minimize profits shown on
financial statements to reduce tax liability.
And secondly, a bank cannot come in to manage a
business if foreclosure becomes necessary.
But, the Small Business Administration sponsors a loan
program and we have numerous contacts in the banking community
who are ready and willing to help you qualify for a loan.
In addition, over ninety percent of business purchases
are financed to some extent by the owner himself, which
demonstrates his confidence in the business.
You
are part of the American Dream – You and your family own
your own business!
Interested
in discussing the purchase of a business? Click
here...
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