The normal flow of the buying process is as follows:
1. Submit the buyer’s Information form by going to register you interest to buy. There you can ask for information on particular listings. All information collected is kept confidential and will not be shared with anyone outside our company or your broker.
2. The broker working will contact you and have you fill out some forms such as a confidentiality agreement, prospective buyer agreement and/or buyer profile. The broker will likely place you on a free notification list for new listings.
3. The broker will discuss the listings and send you information on firms you are interested in.
4. Once you identify a particular practice you are interested in and want to pursue you will contact the broker. You can then request whatever additional information is needed to make your decision.
5. You will want to contact lenders or other possible financing sources.
6. Sometimes there is a meeting between the seller and buyer. The broker might get additional information from you before the meeting. If both seller and buyer are then agreeable, a meeting will be set up. This is a get-acquainted meeting and not a due diligence meeting to see client or other sensitive records. After the meeting you and broker will discuss your interest.
7. At this point you should know your interest. You will make an offer to purchase by faxing or emailing a Sale and Purchase Agreement to your broker. Your broker may be able to supply you with a sample agreement but you will want to consult your lawyer. This will establish price and terms and allow us to cease selling efforts to other parties. A holding deposit might be required. Note that this Agreement must be accepted and signed before any due diligence investigations begin.
8. The broker will forward the Agreement to seller for review and consultation with their lawyer. It is likely they will make changes and suggestions. The Agreement could be in negotiations for several days.
9. Once the Sale and Purchase Agreement is signed by both parties buyer and seller will set up a time to perform due diligence investigations for the purpose of verifying the representations made previously.
10. If outside financing is used the buyer will need to get loan approval and a commitment letter. Loan approval will require the seller and the buyer to submit certain information to the lender. A closing date, time and location agreeable to by the buyer, seller and lender will be set up.
11. Buyer and seller can use time before closing to discuss details of the transition such as client notification, employee notification, procedures and operations, details of transfers, etc.
12. At closing you will pay seller the purchase price or down payment and assume legal ownership. Congratulations!
We hope this answers some of your questions about the buying process. Please contact us with any questions; we’re happy to clarify any information.