Once the sales contract is signed, we usually help you: Note: This article does not contain any agreement that you can use for the sale and purchase of a business. You must either purchase an ADLS or seek help from a business broker. Regardless of this, you should always ask a lawyer to check the agreement, even if a standard ADLS agreement is used. Once you`ve declared a formal interest, you can start with due diligence – the process of understanding what a company`s assets, liabilities, and business potential are. He should test the story the owner tells about his business. Once the sale is over, the seller pays the agent for his services. The agent or agency normally takes the commission from the deposit it holds in its fiduciary account. The agent cannot ask you to pay for their services if they were hired by the seller. These are KPIs that any smart buyer will look at. If you don`t know how to understand these CCPs, you`re not alone.
Do a financial health check and see if your business is working the way you thought it was or should be. You may find some inefficiencies that could be solved easily if you talk to the right people. Once you have signed the agreement and before the buyer takes possession, you are in a transition period where you have obligations to the new owner. The date of possession could be one of the first sections of the agreement, but you don`t decide until you clarify all the conditions. For example, a financing condition allows 3 weeks, and the owner`s consent can last 4 weeks, so the date of possession must be at least 4 weeks plus a few days for lawyers to arrange the agreement. One way to get around this is to use a phrase such as "5 working days from the date this agreement becomes unconditional". This is one of the most complex parts of selling a business and should be discussed with your lawyer and accountant. I would like to draw attention to my disclaimer at the beginning of this article, I am not a lawyer. I said enough. Buying a business or franchise at the right price can have great benefits if you`re starting from scratch – in particular, much of the hard work has been done for you.