Confidentiality is the Key

By acting as intermediaries, Business Connect ensures that every enquiry about your business is carefully vetted. Furthermore, no information that could identify your business is released to potential purchasers without your approval and until a Confidentiality Agreement has been signed.  Learn More

A Broker's Involvement

Buying a business through a broker will help you in this process. Business brokers are qualified individuals who have the expertise and the knowledge in the entire process of selling and buying business, hence having the capability of advising and guiding you through it.  Learn More

The Tools of Selling Businesses

Business Connect brokers have access to sophisticated research and analysis software that enables us to provide valuable insights into the progress of your business sales program. Business Connect Activity Report provides detailed feedback covering marketing activity, level of enquiry, prospect profiles and comment, website tracking and a host of other factors. Learn More

Connect With Us

For more information on buying and selling businesses, or if you are simply considering either option, speak to one of our specialized Business Brokers and get informed on the procedures and make an informed decision today. Learn More

BUYING

If you are planning on either investing or buying a business for the first time, Business Connect have compiled a questionnaire for the most frequently asked questions from first time buyers.

This information will provide you with a generalized outlay of the process in finding and buying a business for sale. More specific answers can be sought from one of our specialized business brokers.

Please feel free to use our search navigator on the left hand side and browse through the list of available businesses for sale.

FREQUENTLY ASKED QUESTIONS

  • How much money would I require?
    • Faq1Prior to looking into purchasing a business it is essential that you look into the funds you have available. This initial process would provide you with a more informed outlook when looking into the businesses you would like to purchase. Calculating funds available and also what assets you could borrow against would provide you with a clearer outlook on businesses within your budget for purchase.

      The second step is in dealing with one of our Business Connect business broker's to assist you in finding the right business for your investment. The business broker can also assist you in informing you of suitable business finance options or inform you if the current owner is prepared to finance some of the purchase price. If the broker is aware of your budget range they would be better informed and more perceptive in providing you with accurate information and statistics towards your business purchase requirements.

      With some types of business it can be difficult to borrow money using just the business as security, due to banks having difficulty in securing its loan. For example, businesses such as a retail store whose asset is the stock which it is constantly selling off. Therefore the bank would not have any actual security. Hence at scenarios like the one outlined before, properties such as a house or an investment home can be placed as security for a mortgage to purchase a business, in turn requiring very little actual cash at hand.
  • What types of information would I require prior to purchasing a business?
    • Faq1Prior to purchasing a business it is essential to gather as much as information as possible about the business you are interested in. However, starting with the basics is always recommended and essential as listed below:

      Price – is the business within your budget and can you fund the purchase?

      Location – is the business suitable for you and is it in a good area for this type of business?

      Lease – how long is the lease and are there rights of renewal (ROR)?

      Rent – how much is the rent and other associated outgoings?

      Staff – how many employees (full-time/part-time)?

      Income – how much money will you earn? How long has the business been operating?
  • In what method are businesses priced?
    • Faq1A majority of the businesses listed with us for sale are valued on the basis of profitability of the business combined with desirability of the industry and the associated risk factor. Businesses in a more desirable industry will fetch higher sales values as they are perceived to be low risk and have a strong demand. Therefore, businesses in a more desirable industry will fetch a higher price than a business in a less sought after industry although they might make the same amount of money.

      Most small owner-operated businesses are valued according to the cash surplus available to the owner. This once again varies between industries and amounts generally depend upon industry demand, location and length of time the business has operated.

      Larger businesses are valued on either a return on investment (ROI) or a price to earnings ratio (PE). Once again this varies between industries and the amount of net profit generated by the business.

      While having your initial meeting with one of Business Connect's business brokers they will provide you with an overview of values of businesses within the industry sectors of interest to you.
  • What would be the ideal business for me?
    • Faq1

      We have often been asked what the perfect business is, however, there is no such thing as a perfect business. Each business and industry has its own unique set of challenges and skills required by the owner. It is however, ideal for buyers to rely on businesses within an industry that they are comfortable in, can relate to and believe they can learn from. We have sold businesses where the new owners have not had any experience with the industry of the business but have however managed to relate well with it and run it successfully. Ideally, when looking into buying a business you should keep your eye on factors such as – what you can do with it; how would you be able to improve it and how you can use your ideas and enthusiasm in making it more productive and profitable.

      At most times new owners can see potential in businesses that the present owners can no longer see because of the new and unique set of skills the new owner brings. At the end whatever the type of business, make sure that it is one which is fun and enjoyable for you.

  • How can a business broker help me?
    • Faq1A business broker is a professional who deals with businesses within various different industries. They would be better qualified to assess your needs and also introduce you to different opportunities you may never have considered. We often have individuals who have bought businesses through our business brokers as they have the capacity to explain to them how a particular business could best suit your requirements. All our brokers have themselves owned businesses, understand the needs and commitments required to operate one and hence have the on hand experience of advising you on the business you are considering to buy.

      Our specialized experienced business brokers have a vast knowledge of the industries businesses operate within and can provide you with a selection of businesses for you to compare when you are considering on buying a business. Our brokers have also prepared the necessary information, gathered financial documents and compiled it within an information memorandum for you to review.

      There is absolutely no cost to you in buying through a business broker as their fee is paid for by the seller.
  • Why should I pay someone to purchase their business when I could simply buy my own?
    • Faq1There are four main reasons to answering the above question; they are:

      - Existing businesses have already shown that there is a demand and need for their product or service hence being a ready made investment. On the other hand, when starting up a new business can be quite exciting and fresh it is also time consuming and has a higher rate of failure due to the lack of establishment in the market.

      - Financial records of existing businesses are readily available so you can see if it is making a profit and the spare cash you have to live off to give you a better picture in paying off any financial commitments.

      - At most times, existing owners usually stay on for a period of time within the business you will purchase in order to train you. This would enable you to learn a new industry and to share their knowledge and experience.

      - Borrowing from the bank against an existing business is easier than getting a loan for a new business. This is usually based on the fact that existing businesses have already been established and new businesses have a higher risk factor.
  • How would I be able to find out more information about a business listed for sale, which I am interested in?
    • Faq1If you are seriously considering buying a business you should make an appointment with one of our specialist business brokers who is knowledgeable in the industry sector which interests you. Our business brokers specialize in the sale of businesses in which they have had prior industry specific experience and knowledge hence having the capability to guide you to the utmost. Your broker will also have the capability of asking you specific questions in order to determine the business best suited for you.

      You will have to sign a Confidentiality Agreement prior to proceeding with the meeting and receiving any confidential information for related businesses. This protects the existing owner by ensuring that the information you receive will remain confidential and not passed on towards any third parties. Business owners would like to be assured that the information given out to pre-qualified buyers is treated with the utmost confidence.

      Once you have decided to buy a business you will benefit from an initial meeting with our business brokers as they will keep you informed with any existing or new business becomes available.
  • What are the steps and procedures required to inspect a business for sale?
    • Faq1The key to this entire process is confidentiality. Your business broker will assist you in arranging a time with the business owner for you to inspect the business.

      Once you have taken into account the financial information presented to you about the business and you are satisfied a physical inspection of the business will be set up. This is always a very sensitive meeting process, as the owner although wanting to show you all aspects of the business and procedures will not want their staff to know about the sale of the business. Please respect the sensitive nature of this meeting/ inspection process and have the courtesy not to embarrass the owner.
  • I have identified a business I would like to buy. What's the next step?
    • Faq1Buying a business through a broker will help you in this process. Business brokers are qualified individuals who have the expertise and the knowledge in the entire process of selling and buying business, hence having the capability of advising and guiding you through it.

      Business brokers will prepare a sale and purchase agreement for you. This document is used to make an offer to purchase the business and would usually include special conditionals to protect you through the process of buying a business. Either way, the owner of the business will want to know that the confidentiality of his business is protected through this process.

      It is always advisable to consult legal advise when it comes to reviewing the agreement. Keep in mind when choosing a lawyer it is always preferable to appoint one who has dealt with the sale and purchase of businesses. Your lawyer will be looking after your interests, similar to how the seller's lawyer will be looking after theirs, however the end agreement has to be mutually agreeable by both parties. Ultimately your lawyer represents you and you must have a say in everything that is done.

      Once the agreement has been signed by you, it is then presented to the business owner who will either accept the offer or make the necessary changes before returning the agreement to you for your acceptance or further alteration. This is called negotiation and the agreement may go back and forth several times based on the conditions made by both parties, until the agreement is mutually agreeable by both. The liaison between the two parties i.e. the buyer and the current business owner will be done by the business broker who through his knowledge and expertise within the industry helps both parties reach an agreement which is mutually acceptable.
  • How can I determine that the information provided to me about a certain business is accurate and valid?
    • Faq1When you are interested in a certain business, initial information will be supplied to you. In most cases the owner of the business will be reluctant in revealing a lot about the business until an offer is made as many aspects of businesses are commercially sensitive and confidential. A business owner will never disclose all the information until a prospective buyer has indicated a serious indication of making a conditional offer.

      Conditional offers are normally subject to the purchaser performing their due diligence of the business. This is a process where by you as the purchaser would request for scrutiny and specific information on the operation of the business. The owner is bound to supply this information to the purchaser under the due diligence clause. Through this process the sense of confidentiality has to be maintained and information cannot be shared with any other parties.

      The process of due diligence is beneficial to the purchaser as it discloses all the intricacies of the business and helps them through the verification process. If satisfied with the results of the due diligence process you will become the proud owner of a new business. On the other hand, if you are not satisfied with the due diligence process, the owner is informed accordingly and the agreement comes to an end.
  • Is there a way I could be informed of new businesses being listed on your website?
    • Faq1Some industries which are highly sought after and newly listed business sell quickly. To ensure you are advised of new upcoming listings we provide you with a unique service to help you stay informed with details of new listings for industries you are interested in.

      Our business brokers can register you or you can do it online simply by registering here and selecting your criteria.

      Most businesses listed with us are sold prior to their advertising campaign. Registering with us provides you with a unique insight into upcoming business for sale which if interested you can enquire directly or keep an eye on.
  • How do I identify the ideal business broker for my business requirements?
    • Faq1It is essential to have a business broker as they are knowledgeable in the industry you would like to invest in. Business Connect's brokers specialize in category and have the experience and the knowledge of asking you the right questions with the ability of advising you better.

      Search through our website for the perfect business for yourself and once identified, let us know about your interest and a specialized broker operating within the industry will be assigned to you for all your business requirements.

      Once again registering through our website makes the entire process quicker and you will be kept informed and up to date with information within the industry of your interest. At any one time Business Connect has over 300 businesses for sale.

Business Connect has one of the most comprehensive and sophisticated databases of business sales in the country. We have been tracking and analyzing trends for many years.We are also one of the only companies to conduct regular independent research to determined the motivations of potential buyers and identify the key issues that are important to them.Using this exclusive information resource, Business Connect can provide significant insights into the many crucial factors that can affect the marketing and sale of your business.Business Connect brokers include specialists in a wide variety of industries. Many have owned and managed businesses themselves and others have extensive financial, management, legal and accounting expertise.

By combining these specialist resources, Business Connect can provide the most balanced appraisal of your business, together with a thorough analysis of the most likely purchasers.When dealing with Business Connect, you have the assurance that you will be working with professionals who have a thorough knowledge of the industry you operate in and can provide sound, reliable advice based on facts, not guesswork.

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63 Tardeo Road,
Mumbai 400034,
Maharashtra, India.