Business Appraisal

It is possible to own a company without starting from scratch when you find a business for sale. Once a suitable candidate has been found, getting it appraised and finding the financing are the next steps.

How to Find a Suitable Business for Sale

After determining what size investment is feasible and what the buyer's ultimate goals are, the next step is to find an available business for sale in the right area. One way to do this is to search the IBBA database. This database includes available listings that can be searched by industry, price, assets or location. This database is intended for brokers, and individuals cannot place or buy companies from the list on their own.

How to Pay for Businesses for Sale

Once a suitable company has been found and appraised, the financing of the transaction needs to be considered. There are several ways to do this:

• It can be leased. There are two types of applicable leases. One is a sell-leaseback situation, where the company buys the property then sells it to the bank or other financial institution with the intention of leasing it back. Net leasing involves the lessor buying the property first from another party and then leasing it to the interested lessee.
• It can be purchased with a loan from a bank. A loan is taken out by the buyer and used to purchase the company.
• The business for sale can be bought in cash. The buyer gives the seller the money up front.

RPI Commercial is a full-service company that offers appraisal services, brokerage and planning. For more information, call 877-549-5210 or send an email to info@rpicommercial.com.