Nazarian has been helping buy and sell businesses in Michigan since 1988Southfield, MI, USA - Entrepreneurs and business owners in Michigan looking to expand their business portfolio may be interested in what industry leader Armen Nazarian says. Nazarian understands the process, having worked in Michigan since 1998 before starting his brokerage in 2007. He warns business owners that buying a new enterprise can be long and complicated. Knowing what to look for when purchasing a business or hiring business brokers can make all the difference.
Buying can be broken down into a step-by-step process: have an idea beforehand, look for businesses, understand why they are on sale, narrow the selection, perform due diligence, evaluate the price, secure your capital, and close the deal. However, when you work with a brokerage like Armen Nazarian Business Brokers, they handle most of the legwork while ensuring you get the best deal.
Buying a Business
When purchasing a new business, entrepreneurs must consider many factors. First, business owners want to know why companies are up for sale. Have they fallen behind the competition? Are the owners retiring? Was there legal trouble? Are there outstanding debts? While these issues may not be deal breakers, the new owner must handle them after purchase. Nazarian recommends talking to current owners, customers, and employees.
Prospective buyers should narrow their potential purchases to businesses matching their budgets, goals, and resources. Also, consider time and money investments beyond the initial purchase. Next comes due diligence, one of the more tedious aspects of the process. If a broker is not hired, the buyer should find a lawyer and accountant to help them. Buyers must ensure the company is up to date on permits and licenses, check the certificate of good standing, view founding paperwork, review zoning laws, and check environmental regulations. Next, the buyer must ensure they understand the business financials and employee organization; they should also review the quality of the building, equipment, furniture, and inventory they are purchasing. Finally, if they decide to move forward, they must receive a Letter of Intent from the seller. The LOI lays out what assets and liabilities are included in the sale, but it also indicates the seller’s commitment to go through the process.
Taking the LOI, the purchaser must meet with their accountant to evaluate the price while factoring in assets, earnings, or market approach. The asset approach is recommended for capital-intensive businesses, while the earnings approach is best for companies turning a profit. The market approach works well for local factors or confirming a price decided by the other two methods. Finally, entrepreneurs must secure their capital and close the deal.
Working with a Broker
Nazarian recommends working with a broker, and that’s not just because he is one. Brokers handle the tedium of due diligence and negotiations, allowing entrepreneurs to focus on business aspects such as a plan for the company after purchase.
A broker will provide a list of businesses that meet what an entrepreneur is looking for and help them narrow the list further. Then they will take over document review and due diligence. Once the entrepreneur signals they would like to proceed, the broker will work with the seller and handle negotiations and legal requirements. They can also assist with securing capital. One of the more crucial benefits of a broker is confidentiality— entrepreneurs don’t need to worry about any leaks regarding the sale. Leaks regarding the sale of a business can be catastrophic for a business’s reputation and employee morale if not enough information has been solidified.
Nazarian recommends finding a brokerage with a proven track record and a promise of confidentiality and integrity, such as Armen Nazarian Business Brokers.
About Armen Nazarian Business Brokers
Armen Nazarian Business Brokers have decades of experience buying and selling businesses in Michigan. They handle all aspects of the purchase and help ensure a smooth transition. The Armen Nazarian Business Brokers are highly trained to find businesses for sale or provide qualified buyers, perform due diligence, check documents, close the deal, and more. In addition, they work with the utmost confidentiality, protecting business information and privacy throughout the project. When purchasing a business, optimal cash flow and efficiency are critical. When entrepreneurs work with Armen Nazarian Business Brokers, they can trust negotiations will go in their favor.
Buying a business in Michigan is time-consuming, and most business owners have other matters to attend. Rather than adding another item to their docket, they should trust Armen Nazarian Business Brokers to handle the purchase with integrity.
Contact Information
Interested parties can contact Armen Nazarian through email at info@armennazarian.com, by calling 248.231.7714, or by filling out the company’s online form.
Media Contact
Company Name: ARMEN NAZARIAN BUSINESS BROKERS
Contact Person: Armen Nazarian
Email: Send Email
Phone: (248)-231-7714
Address:29600 Northwestern Hwy #106
City: Southfield
State: MI
Country: United States
Website: https://www.armennazarian.com/
