Steps Involved For Buying A Vending Business Or Vending Route For Sale
Unless you've bought or sold a business in the past, you'll find that buying a route for sale can be at times an overwhelming experience. That's why it is important for the prospective buyer to be knowledgeable about the process and to follow our simple steps outlined below when considering purchasing one of our routes for sale. Thoroughly understanding the process will assist even a veteran of business transfers in working with all companies involved. View more information about the steps involved and the Buying Process Here.
Step 1: Non-Disclosure and Confidentiality Agreement. Before receiving sensitive confidential information, buyers must first sign a Non-Disclosure and Confidentiality Agreement. These agreements protect the prospective Buyer from having anyone such as an employer, employees, or the competition discover about the proposed acquisition prematurely. It also protects the Seller against unnecessary problems with customers, employees, vendors, competitors, landlords, bankers, creditors, etc.
Step 2: Financial Documentation. Our sellers have asked us to pre-qualify their potential buyers before delivering their financial documents or setting up a face to face meeting. Therefore it is necessary for us to verify that the prospective buyer has ability to purchase with cash and/or is pre-approved through a financial institution. We do not require you to send us sensitive information like bank statements or account numbers. In most cases we just need a letter from your bank stating you have the ability to purchase for the full amount or difference not obtainable through financing. You can also review more Financing Options Here.
Step 3: Face To Face Meeting. After reviewing the vending route for sale and financial documentation, if the prospective Buyer determines that the business presents a desirable opportunity the Buyer should arrange a face to face meeting with the Seller to explore the route territory, learn operating procedures, and gain additional insight.
Step 4: Making An Offer. After meeting the business owner and touring the vending route for sale, the next step is to present an offer of purchase for the business. Making the offer can be made at any time during the above process, and should also be noted that it is not the final step. In fact, it should be viewed as the first of several steps, each of which bring the Buyer and Seller closer to completing the transaction. Note: It is the prospective Buyer's duty and obligation to verify the accuracy of the Sellerís representations.
Step 5: Purchase Agreement. Once a selling price for the business has been agreed to, it is now time to execute a purchase agreement between the buyer and seller and place a good faith deposit into escrow. If financing is going to be done through a lending company, a credit application must be submitted for approval. Note: Every lending companyís policies and procedures vary, but in most cases as long as you have a descent credit score, and no bankruptcies you should not have a problem being approved by our lending source.
Step 6: Good Faith Deposit. Also referred to as "Earnest Money" is required for generally 9% of the selling price or $9000, whichever is greater. This is usually placed in an escrow account or with a third party. The good faith deposit should be made at the time you sign the purchase agreement.
Step 7: The Closing. A formal date will be set and the final exchange of the business and money will take place between the buyer and seller in the form of a certified cashierís check after the negotiated training period is over. After a successful closing, the good faith deposit will be released from the escrow agency.
Disclaimer: Routes For Sale is a Broker that brings buyers and sellers together. All agreements are made between the buyer and seller and not Routes For Sale. The above outlined steps are simply recommendations to make the buying and selling process go smoother. It is the prospective Buyer's duty and obligation to verify the accuracy of the Sellerís representations and if necessary retain attorneys, accountants, business appraisers, or other professionals.