Step 1 Open a corporation, get a tax identification number (EIN employer identification number), if you are not a permanent resident you must obtain your ITIN number and then use it to apply for your EIN number immediately and start building the corporate credit.
Step 2 Get a personal credit consultation to see how much credit you could obtain
***Fix your credit or get a partner if there are issues
Step 3 Apply for business credit with your new corporation
Step 4 View Businesses
Step 5 Choose your business
Step 6 Draft a letter of intent (an offer agreement) with a deposit. Due to the fact that business records are personal and many trade secrets, marketing strategies, functional procedures that make a business successful will be disclosed during due diligence a deposit is required to show the buyer is serious. Furthermore it is extremely time consuming, intrusive and burdensome to the owner. There is also a risk that employees may quit after learning the business is being sold.
Step 7 Perform Due Diligence. Inspect business records, confirm the sales, expenses and income. Create various “What if” models in an excel spreadsheet to project future income. Create net present value models with multiple probability assertions to discover the true value of your investment and how much money you will receive. (Call Thomas McGovern, MBA, CVA, Certified Business Valuator at 929 366 0211 if you have any questions regarding inspecting and appraising businesses.)
Step 8 Write a business buyers resume demonstrating your experience to the landlord and a seller especially if you are requesting seller financing, A job history with references, Also prior landlord references and personal character references
Step 9 Apply for a lease transfer or a new lease from the landlord (The landlord will evaluate your credit and approve you if you have
Step 10 Apply for license and permits obtain business insurance required by licenses, permits and the landlord. A New York State sales Tax Registration is required to purchase most businesses. Then depending upon the business other licenses and permits are required.
Step 11 Have an attorney draft the purchase agreement, bill of sale, assumption of the lease, escrow agreements, NYS Bulk sales tax forms, and lien searches.
Step 12 Purchase the business at the document closing location where the payment is made, contracts are signed and assets are transferred.