1. A signed offer secures the business for you while you carry out the due diligence process. It shuts out other buyers while you do this.
2. Your legal and accountancy costs of a preliminary investigation of the business could be wasted if another buyer makes an offer, and shuts you out. Your costs are also wasted if you are unable to get acceptance of terms, conditions and price when you eventually do put in an offer.
3. A signed offer assures the seller that you are a genuine buyer who has demonstrated their goodwill by paying the deposit. This is the best way to build a relationship of trust and may ensure a higher level of co-operation during the due diligence process, the period of vendor assistance and any relationship that you may have with the vendor in the future.
4. Getting acceptance of a signed offer is the only way you can start to negotiate side agreements, employment arrangements with staff, verification of the customer and supplier bases, lease variations, agreement for assignment of franchises or any of the numerous other terms and conditions you may require. Your broker will advise you on these and how to state them in the further terms of sale.
Sadly, some business buyers have learned the hard way that there is no such thing as a lost opportunity. The opportunity that they did not take when they had the chance was taken by someone else, but it was not lost!
Your Grenadier Business Broker is in a good position to assist you with the business buying process. You can rely on your broker’s help, advice, experience, training and expertise, every step of the way.
Please direct all enquiry through your Harcourts Grenadier Business Broker. Under no circumstances should a prospective Purchaser, or their representative, make contact with the Vendor’s management, staff, customers, suppliers, landlord or any other party related to the Vendor’s business, without the prior consent of the Vendor.