The Exit Broker Process
Buyer Process for Reviewing a Business Listing
It is important to understand the buyer process to improve your chances of successfully purchasing a business.
Initial inquiry: NDA, Buyer Qualifications.
Preliminary Access: Broker grants Buyer access to Business Profile, Seller Interview, and Financial Summary.
Buyer – Broker Call: Next, Broker speaks with Buyer over the phone. During this call, Buyer and Broker discuss the Business and preliminary information provided.
Extended Access: If Buyer and Broker decide to continue, Broker grants access to additional Business information.
Buyer – Seller Meeting: After review of the Business information, Buyer and Seller have a meeting or phone call.
Offer: Buyer works with Broker or their external counsel to prepare an offer to be presented to Seller.
Due Diligence: Once an offer is accepted, Broker sets up a secure data room and facilitates the Due Diligence Process.
Definitive Agreements: Broker works with Buyer and Seller to facilitate the preparation and agreement on Definitive Agreements.
Closing: Lastly, closing occurs as agreed upon in the Definitive Agreements and Buyer assumes ownership of the Business.
Expectations of Buyers
1. Initial Inquiry
2. Preliminary Access
Broker grants Buyer access to the Business Profile, Seller Interview, and Financial Summary.
3. Buyer - Broker Phone Call
A call occurs between Buyer and Broker and Broker learns more about the Buyer. Buyer asks Broker questions pertaining to information provided during Preliminary Access.
4. Extended Access
If Buyer qualifies financially and has appropriate experience, Broker grants Buyer access to additional information. This additional information includes detailed financials, equipment lists and Seller’s Business Disclosures.
5. Buyer - Seller Meeting
Broker coordinates either a face-to-face meeting or conference call between Buyer and Seller. Seller’s time is limited, so please email Broker a prepared list of questions and please make sure the questions aren’t already addressed in the Seller Interview. If a face-to-face meeting occurs, take extra caution in not sharing your reason for the meeting with any of the Business employees or customers you may interact with. If asked the purpose of the meeting, feel free to answer that ‘it’s a personal meeting’.
If Buyer wishes to make an offer, they present a LOI or proposed term sheet outlining the components of the offer. This may be prepared by Buyer’s attorney, but it is preferred if Buyer uses Broker’s LOI Template to streamline the offer process.
7. Due Diligence
Once the seller and buyer accept the offer , Buyer must submit a due diligence request list. Broker will establish a secure data sharing room for all parties to access the information. Information will be released in a controlled manner with more sensitive information shared in the later stages of due diligence.
8. Definitive Agreements and Closing
While this buyer process may be different from that provided by other brokerage firms, Exit Brokers feels this process provides the best opportunity for a successful transaction. If you have any questions, please email the broker directly or send us a message