Buying Process

You will be required to sign an NDA, thereby promising to maintain confidentiality for all of the information provided to you on the business we review, discuss, or present.

By completing the VR Buyer Profile, you are providing us with information about yourself. It includes a resume, financial statements, and available capital to invest. Sharing information about yourself makes it more likely we can find a business that matches your needs. It also goes without saying that the more information we can provide about the sell and financing sources, the stronger your negotiating position.

Together with your VR business broker, you will discuss and review various types of industries and specific businesses. The narrowing of options that appeal to you, or that you may be qualified to acquire, saves valuable time for all parties. You will have the ability to review confidential business profiles that, in part, summarize the business, its financial information, facility, and lease information.

You can be certain that we will only present you with carefully selected businesses for sale in Pennsylvania that precisely match your buying criteria. Next, we will review and discuss those businesses with you and the opportunities that each present. You will learn about these businesses during initial presentations that can range from digital presentation and presentations in our boardrooms to physical on-site visits once the information process has proceeded. Remember the greatest levels of confidentiality must always be maintained at every stage of the process.

At this stage the examination of financial records and other operational information, inventory, management, and lease reviews take place. The due diligence and inspection stages are critical for the buyer to confirm that what the seller has claimed to be is truthful and accurate, and meets the conditions of your offer.

With the assistance of your VR broker, the next step is to prepare an Offer to Purchase on the VR Purchase Agreement (a Letter of Intent may be used on larger transactions). An Offer to Purchase will include an earnest money check along with contingencies that are to be satisfied during Due Diligence.

Your VR intermediary presents your offer to the seller and takes the time necessary to explain the terms and conditions of your offer to the seller and their decision makers.

With your approval, your VR intermediary provides the seller your background, financial information, experience and basis for arriving at the offering price, along with terms and conditions. Substantial background information can result in a favorable consideration of your offer.

The seller will either accept the Offer to Purchase as it is written, or will present a Counter Offer. Once the buyer and seller agree to all the terms and conditions of the sale, sign all counter offers, and amendments (if any), you have mutual acceptance and it then becomes a Contingent Purchase Agreement.

At this stage the examination of financial records and other operational information, inventory, management and lease reviews take place. The due diligence and inspection stages are critical for the buyer to confirm that what the seller has claimed to be is truthful and accurate, and meets the conditions of your offer.

You remove all contingencies as each is resolved or met in the Agreement. Once completed, it is a binding agreement.

VR Business Sales located in Newtown, PA will send the Purchase Agreement and other documents to the escrow attorney or closing attorney who then drafts the closing documents and deposits the earnest money deposit into their trust account. Escrow is “open” as soon as both buyer and seller have signed the documents. Depending on the geographic location in which you live or are acquiring the business, the process may be handled by parties other than an escrow company. Your VR intermediary can educate you what to expect in your local market.

In most geographic areas the attorney for the buyer, or the escrow company, performs a lien search on the business to identify any secured creditors. Liens to secured creditors will be removed prior to closing. During the lien search there will also be an investigation with tax agencies for tax clearances.

During the escrow period the buyer, with the aid of their advisors, will be obtaining liability insurance for the business for sale in PA, workman’s compensation insurance (if required), all necessary business licenses and permits, EIN/TIN (Employer Identification Number/Tax Identification Number), and form the appropriate business entity.

The lease agreement can be complex, and a seller’s landlord may require the assignment of an existing lease or even a completely new lease. Together with the landlord and the seller, you will need to acquire all needed documentation for closing. The landlord will require the following information: the lease application, your personal financial statement as well as your resume. All of these items are essential to guarantee your lease is complete at closing.

VR Business Brokers located in Newtown will work with you, the seller, and an escrow officer/closing attorney to have agreed upon notes and equipment leases assigned to you and your new corporate entity.

Arrangements are made for you and the seller to count and price the inventory if it applies to the relevant business for sale in Pennsylvania. In the case of large or complex inventory, it may be necessary to outsource this function to an inventory service.

Signing of the final closing documents may be done at escrow, in person, or in many cases, via courier, email, or fax. These arrangements will be agreed upon by all parties prior to closing.

Agreed upon training with the seller commences after the closing and during the change of possession. The terms and length of seller involvement training is agreed to as part of the executed Purchase Agreement.