Ten Steps to Buying an Internet Business

We've distilled the acquisition process down to these ten steps:

Step 1 - Identify a potential acquisition
We will help you clarify your goals, interests, income requirements, investment level, and time frame for getting into business. We will introduce you to businesses that meet your criteria.

Step 2 - Review Preliminary Information
You will review the information on the company or companies for sale. Check out their websites. Make a list of unanswered questions. Try to picture yourself growing this business.

Step 3 - Study the Competitive Landscape
Study the competitors that are selling similar goods and services or competing for strategic keywords.

Step 4 - Meet with the seller
If geographically possible, it is always best to sit down face-to-face with the seller. If not, we can schedule a buyer/seller teleconference. This is the time to ask general to probing questions on anything and everything (but not the time to begin negotiations on price and terms!).


Step 5 - Preliminary evaluation
It is now time to review the information you’ve received in greater detail. You may want to do your own projections of earnings for the next three years based on the history of the company and your anticipated improvements. You may choose to do some research into the general industry if you are unfamiliar with it. Make a list of all the changes you would make if it were your business.

Step 6 - Make an offer
Your Sunbelt advisor will assist you in preparing a written offer. The offer will include contingencies which will allow you to confirm the information you’ve received and to validate assumptions you’ve made. Two of the most common contingencies are a contingency upon approval of financials and a contingency upon obtaining financing.

Step 7 - Agree on price
Your offer may often receive a counter offer. This document may go from seller to buyer several times until a price is agreed upon.

Step 8 - Due diligence
This is the time to look closely at the accounting records of the company and to inspect the business back office to insure that your assumptions are valid.

Step 9 - Documents prepared for closing
You will receive a checklist from your Sunbelt advisor that lists what to do to prepare for closing. An escrow attorney will draft all necessary legal documents to comply with the agreement that you and the seller have reached. Typically the buyer and seller share the closing expenses.

Step 10 - Close and celebrate!
Close the purchase and begin your first day as the owner of your very own business. The seller will be available to assist in the transition of the business.