V.G. Diaz & Associates LLC

Buy a Business

Buy Side Brokerage Services

V.G. Diaz & Associates offers business brokerage services coupled with industry expertise to anyone considering selling a small to medium size businesses in the area of retail, medical wellness (e.g. MedSpa), gas stations, c-stores, liquor stores, restaurants, and more. Services include business valuations, exit strategies, brokerage services and many other subjects related to the sale or purchase of a business.

Buy a Business

DO YOU DREAM OF BUSINESS OWNERSHIP?

Buying a business can be a complicated process, and finding the right business to meet your needs can be intimidating. For this reason, buyers often benefit from working with a business broker to help them find the right business or firm to meet their needs.

At V.G. Diaz & Associates, we can help. While there is no such thing as the perfect business, a business broker knows the importance of finding the right fit, and they have the experience to help you find a business that will meet your needs, skills, and lifestyle.

We Make Buying Simple

OUR 3 STEP PROCESS

Starting the process of buying a business can feel overwhelming. We make it as simple as possible with our 3-step buying process to ensure we find the right fit for you.

01

Initial Consultation

During the initial consultation we will get to know one another more. Learning about your education, background, personal interests and work history can help us determine the type of business that might be of interest to you and set you up for the best chance of success. We want the business you buy to provide you both financial success and an increased level of job satisfaction.

02

Identify Investment Criteria

The next step will be identifying your specific criteria for a business acquisition. This will include among other factors: industries that you are interested in, industries to avoid, geographic areas of interest, revenue requirements, cash flow requirements, funds available to invest, funding sources, and your timeframe for buying a business.

03

Buyer Rep Agreement

With your investment criteria in mind we can begin the search for business opportunities. This is where we formalize our relationship. We will execute a buyer representation agreement allowing us to work as your agent. As we review opportunities, we will continue to refine your investment criteria until we find the right opportunity for you. We represent you through the entire acquisition process

Consider Whether Owning a Business is Right for You

As you begin the process of looking for a business to buy, it is important for you to keep in mind that buying a business is a major undertaking. Having your own business is more than a job, it is a lifestyle, and it is important that you be prepared for everything that entails including working long hours and making difficult decisions. Before you throw yourself into the process of buying a business, you should consider whether business ownership is right for you and your family by asking yourself the following questions.

How long have you been thinking about buying a business?

Perhaps the most important thing to consider when deciding if business ownership is right for you is whether you have your family’s support. Considering how difficult and time-consuming it is to run a business, you need to make sure that your family, and especially your spouse, are behind you 100 percent. If you do not have your family’s complete support, you may struggle emotionally, which could affect your business.

Ultimately, if you think you have what it takes to own a business, you may never work for someone else again.

Reason for Selling

Of course, you should also try to find out why the current owner is selling. If an owner has been running a business for a couple of years and claims they want to retire, you should be suspicious. An owner’s reason for selling can be a red flag indicating that something is wrong with the company. Good reasons for selling are a long-time owner looking to retire, an owner selling for health reasons, or an owner selling to relocate. Reasons that may be cause for concern are a short-term owner selling or an owner selling to pursue other business interests.

Understand the Financials

It is important that you take a good long look at a company’s books and financial records, as this can give you a better idea as to how the business is really doing, and whether it is a good investment. You may discover that the owner is actually selling due to a recent decline in business or the loss of a major customer. Look everything over carefully to see understand the business operations and see how the business has done over the years.

Since many small and medium sized businesses sell with some owner financing, the owner will also be interested in making sure that you are a qualified buyer.

Length of Operation

It is important when researching prospective businesses that you find out how long a company has been in business. While there may not be guarantees when buying a business, a company with a long track record has a good chance of future success. This long history means that they are well established in the area, and they likely have a loyal customer base, giving you a good place to start as you take over ownership. It is also a good sign if the current owner has owned the business for many years. Multiple owners may indicate a struggling business.

How long have you been thinking about buying a business?

The first thing you should ask yourself is how long you have been considering buying a business. While many people consider business ownership the American dream, this does not mean that business ownership is for everyone. The fact is that some people will look at businesses endlessly but do not have the courage to move forward. In fact, it has been suggested that the longer you look, the less likely you are to buy a business. If you have been uncertain if owning a business is a good choice, and you cannot seem to decide what to do, then business ownership may not be right for you.

How much are you willing to invest in a business?

The fact is that owning a business represents a serious financial investment, and oftentimes first- time business owners are not prepared for the amount of capital running a business takes. If you are not the type to take a risk, or you are not willing to invest the majority of your liquid assets in a business, then you may need to rethink owning your own business.

Do you need a guarantee?

You should also ask yourself if you are looking for a sure thing or a guarantee; if so, business ownership is not right for you. The fact is that even if you do your research and make all of the right choices, you cannot guarantee that a business is going to be successful. Even if a business was successful under the previous owner, subtle changes you make could affect business. Before investing in a business, you must understand that there are no guarantees that you will succeed.

Finding the Right Business

Once you have decided that business ownership is right for you, it will be time to start researching potential businesses for sale. If you find a business that you think you are interested in buying, how will you know if that business is a good investment? Here are a few things that you should look for in a potential business investment.

Ready to Buy Your Business?

Starting the process of buying your first business can feel overwhelming, and it is natural if you still have questions after reading the above information. Let us help you answer those questions.

Schedule a Call Today!

Click the Calendar Link below to schedule a FREE, No-Obligation, 30-minute consultation with an expert business broker today. We will discuss the selling process, what to expect, and the facts about current business sales in your industry. V.G. Diaz & Associates, holds all conversations confidentially.

Frequently Asked Questions

Do I need an attorney?

It may be advisable to have an attorney review the legal documents. It is important, however, that the attorney you hire is familiar with the business buying process and has the time available to handle the paperwork on a timely basis. If the attorney does not have experience in handling business sales, you may be paying for the attorney’s education. Most business brokers have lists of attorneys who are familiar with the business buying process. An experienced attorney can be of real assistance in making sure that all of the details are handled properly. Business brokers are not qualified to give legal advice. However, keep in mind the fact that many attorneys are not qualified to give business advice. Your attorney will be, and should be, looking after your interests; however, you need to remember that the seller’s interests must also be considered. If the attorney goes too far in trying to protect your interests, the seller’s attorney will instruct his or her client not to proceed. The transaction must be fair for all parties. The attorney works for you, and you must have a say in how everything is done. If you know someone who has owned their own business for a period of time, he or she may also be a valuable resource in answering your questions about how small business really works. You have to make the final decision, that “leap of faith”, between looking to own a business and actually being in business. It’s a decision that only you can make!

How are businesses priced?

Generally, at the outset, a prospective seller will ask the business broker what he or she thinks the business will sell for. The business broker usually explains that a review of the financial information will be necessary before a price or a range of prices can be suggested for the business. Most sellers have some idea about what they feel their business should sell for – and this is certainly taken into consideration. However, the business broker is familiar with market considerations and, by reviewing the financial records of the business, can make a recommendation of what he or she feels is what the market will dictate. A range is normally set with a low and high price. The more cash demanded by the seller, the lower the selling price; the smaller the cash requirements of the seller, the higher the price. Since most business sales are seller-financed, the down payment and terms of the sale are very important. In many cases, how the sale of the business is structured is more important than the actual selling price of the business. Too many buyers make the mistake of being overly-concerned about the full price when the terms of the sale can make the difference between success and failure. An oft-quoted anecdote may better illustrate this point: If you could buy a business that would provide you with more net profit than you thought possible even after subtracting the debt service to the seller, and you could purchase this business with a very small down payment, would you really care what the full price of the business was?

Why should I go to a business broker?

A professional business broker can be helpful in many ways. They can provide you with a selection of different and, in many cases, unique businesses, including many that you would not be able to find on your own. Approximately 90 percent of those who buy businesses end up with something completely different from the business that they first inquired about. Business brokers can offer you a wide variety of businesses to look at and consider. Business brokers are also an excellent source of information about small business and the business buying process. They are familiar with the market and can advise you about trends, pricing and what is happening locally. Your business broker will handle all of the details of the business sale and will do everything possible to guide you in the right direction, including, if necessary, consulting other professionals who may be able to assist you. Your local professional business broker is the best person to talk to about your business needs and requirements.

Why should I buy a business rather than start one?

An existing business has a track record. The failure rate in small business is largely in the start-up phase. The existing business has demonstrated that there is a need for that product or service in a particular locale. Financial records are available along with other information on the business. Most sellers will stay and train a new owner and most will also supply financing. Finding someone who will teach you the intricacies of running a business and who is also willing to finance the sale can make all the difference.

What should I look for?

Obviously, you want to consider only those businesses that you would feel comfortable owning and operating. “Pride of Ownership” is an important ingredient for success. You also want to consider only those businesses that you can afford with the cash you have available. In addition the business you buy must be able to supply you with enough income – after making payments on it – to pay your bills. However, you should look at a business with an eye toward what you can do with it – how you can improve it and make it more productive and profitable. There is an old adage advising that you shouldn’t buy a business unless you feel you can do better than the present owner. Everyone has seen examples of a business that needs improvement in order to thrive, and a new owner comes in and does just that. Conversely, there are also cases where a new owner takes over a very successful business and not soon after, it either closes or is sold. It all depends on you!