Buying a Business

Steps to Owning Your Own Business

  1. Initial Consultation by A KR Business Broker
    • To help analyze your skills, interests and financial needs
  2. Selection of Businesses Best Suited to Fit Your Needs
    • KR Business Brokers has a wide range of businesses for you to select from
  3. Review Business Summary
    • Basic Information about the Business
    • Valuation of Business
  4. Tours of Selected Businesses
    • Tour businesses to meet Seller(s) and understand the complete business opportunity.
    • Always be accompanied by a kR Business Broker
  5. Second Consultation with A KR Business Broker
    • Discuss visited businesses as to your likes, dislikes and concerns
    • Review financial summaries of businesses toured that appeal to you
  6. Meeting / Conference Call with Seller & Broker
    • Ask Probing Questions
    • Confirm that the Business is right for you
  7. Make Proposal with Earnest Money
    • Generally 5% of the purchase price
    • Earnest money held by Escrow Company
    • Contingencies and conditions in offer may include:
      1. Proof of sales and expenses
      2. Training period from the Seller
      3. Covenant not to compete (time and area)
      4. Approval of franchise agreement
      5. Obtain an adequate lease
      6. Approved of 3rd Part Financing
    • Earnest money refunded to you if contingencies are not realized
    • If you are satisfied with the business, your earnest money simply will become part of your
    • initial investment in the business
  8. In Depth Inspection of the Business ("Due Diligence")
    • Review financial information provided by Seller
    • Check furniture, fixtures and equipment
    • Remove contingencies and approve Authorization to Close
  9. Request to Open Escrow, Prepare Documents and Conduct Searches
    • Request made only after Authorization to Close is approved
    • Additional Deposit to Open Escrow, generally 50% of total down payment less Earnest Money
    • Buyer and Seller share closing costs which range from $500-$1,000
    • Review all documents
  10. Inventory Approved by Buyer and Seller
    • Inventory to be counted by Buyer and Seller prior to closing
  11. Closing - Congratulations you are now a business owner!