Buyer Frequently Asked Questions
The purchase of a business is an unfamiliar, sophisticated, nuanced process for many entrepreneurs. IBA believes the best business acquisition transactions are completed in an environment of full disclosure between the parties employing a process that utilizes “best practices”.The “best practices” employed by IBA facilitating/negotiating transactions have been developed through the successful completion of over 4000 sales of privately held companies and family businesses in the Pacific Northwest since 1975.
All questions related to buying a business are welcome by IBA. If a question cannot be answered, an answer can generally be obtained either internally or through collaboration with a professional partner in the business community.
The following is a selection of Frequently Asked Questions received by IBA from business buyers looking to acquire a privately held company or family owned business in the Pacific Northwest.
Frequently Asked Questions (FAQ's) - Business Buyer
IBA is predominantly a sell side representation firm serving the upper Main Street and Middle Markets in the Pacific Northwest. On a very selective basis, IBA will represent buyers in acquisitions of businesses. IBA’s buyer representation is almost exclusively for prior clients, parties who have identified a specific company for acquisition, or to come to the aid of a professional partner in the business community.
All of IBA’s fees are paid by our sell side clients. There is no cost for a buyer to evaluate a business represented for sale by IBA as a potential acquisition. All potential business buyers will be asked to complete a confidentiality agreement and demonstrate the ability financially to negotiate in “good faith” prior to receiving specific information about a business represented for sale by IBA.
The best way to review businesses represented for sale by IBA on an ongoing basis is to participate in our buyer database program. Participants in IBA’s buyer database program proactively receive information on businesses represented for sale by IBA that match their acquisition criteria. Participants in IBA’s buyer database program are required to complete a confidentiality agreement, hold all information provided in strict confidence, and demonstrate the financial ability to negotiate in “good faith”. All information provided to IBA is held in strict confidence.
IBA does not publish a complete set of the businesses it has listed for sale to control the distribution of confidential information and due to the spectrum of industries and sizes of businesses we represent for sale. We prefer to match qualified buyers with specific businesses as they enter the market and professionally present the companies for sale to potential buyers.
IBA is happy to co-broker a transaction and share commission with another business broker. IBA requires the buyer’s broker to make the first inquiry about a business on behalf of their client to be eligible to share commission. If the potential business buyer contacts IBA directly before engaging a broker, IBA remains happy to work collaboratively with the buyer’s broker, but will not share commission.
IBA recognizes that finding a business to purchase in a specific geographic area can be problematic. To address this issue, IBA has a certified franchise broker, Curt Maier, on staff who has the ability to assist with franchise acquisitions.
IBA has a strong collaborative relationship with the Pacific Northwest banking community. We are happy to provide introductions to experienced, knowledgeable bankers actively financing business acquisitions.
IBA recommends all business buyers engage an experienced, knowledgeable business attorney to assist with a business acquisition. IBA is happy to provide introductions to business lawyers we have worked collaboratively with in the past and found their work superior.
IBA recommends all business buyers engage an experienced, knowledgeable CPA or accountant to assist with a business acquisition. IBA is happy to provide introductions to accountants who work with business owners we have worked collaboratively with in the past and found their work superior.