The Coffey | Owens 10 Step Buyer's Assist Process
Step 1 - Introductions and Information Sharing
- Buyer contacts Coffey Owens Group.
- Introductory Coffey Owens Group information package and Buyer Profile are provided.
- Arrange a scheduled office meeting upon receipt of completed buyer profile.
Step 2 - Buyer Criteria & Qualification
- Explain importance of confidentiality for all involved in this process.
- Collective review of Buyer Profile in order to elicit additional information.
- Work with buyer to identify and develop criteria for acquisition.
- Educate buyer on the complete process to successfully acquire a business.
- Determine the family’s minimum financial requirements necessary to maintain current
standard of living.
- Identify equity immediately available to invest in a business opportunity.
- Determine borrowing ability and any obstacles to obtaining a loan.
- Explain our valuation process, including opinion of value.
Step 3 - Identify & Contact Potential Acquisition
- Internet Research Direction.
- Provide insights and guidance into the business search procedure
- Issues and information immediately discernable from business advertisements
- Key questions the buyer should ask the broker, and the proper time and way to make these inquiries,
in the proper way and the most opportune time.
- What information the buyer should get directly from the Seller.
- How to ask the tough questions without offending the Seller.
- COG Direct Mail and Direct Contact of Businesses.
Step 4 - Loan Qualification Preparation
- Introduce the buyer to recommended lending institutions.
- Explain the do’s and don’ts of your single and best opportunity for SBA loan qualification.
Step 5 - Meeting the Seller and their Broker
- If the buyer requirements do match the information provided on the business, a meeting with the
Seller is scheduled.
- Coffey Owens Group will be present and assisting the buyer in this initial meeting with the Seller.
Step 6 - Opinion of Value/Business Analysis.
Step 7 - Create an Offer to Purchase
Provide direction for the buyer to create an offer to purchase.
- Negotiate agreement on price and terms.
- Letter of intent signed and earnest money deposited.
- All documents necessary for underwriting review are created and/or collected by Coffey Owens
- Assist in properly addressing additional questions from the Lender.
- Coffey Owens Group works with the closing attorney to insure all documents necessary to complete
the transaction are in process and on schedule.
- Request price allocation breakdown from buyer’s CPA.
Step 8 - Deal Management
- Handle the inevitable “deal breaker” conflicts that threaten most deals at least 3 times before
- Provide professional liaison services between the seller, the broker, buyer and seller CPAs, the
closing attorney, and the lender.
- Anticipating and resolving the “predictable surprises” so familiar to experienced business transfer
- Diligent, on-going review of sales contract deadlines, progress of loan funding, and scheduling the
closing for all participants.
Step 9 - Closing
- Instruct each party on what will be needed at closing.
- Orchestrate participants to the closing table.
- Guide the closing process, addressing any last minute concerns or issues.
Step 10 - Follow-up
- Once the transfer process is complete, Coffey Owens Group wil follow-up to ensure the business
transition is going smoothly.
Current Market Value:
The Main Buying Consideration
The most critical step in the purchase of any business is determining its value. Some buyers will
need a formal report for presentation to board of directors, while some buyers are considering a sale
further down the line may just want a “ball park” figure to use as a benchmark. Most companies that
offer business valuations offer one product. Coffey Owens Group is unique in that it offers 3 levels
of Business Valuations. We work closely with our buyers and their CPA’s to determine which valuation
option is best for their particular business.
- What is “value” in general terms?
Buyers will use more conservative valuation models. Sellers will use more liberal models.
Our objective is to put you, the buyer, in control. How?
By providing you with facts, when the sellers only have their own opinion.
- Why is understanding the value important?
- Helps you decide if you should buy now or hold off, or move to other opportunities.
- Establishes realistic expectations.
- Provides an excellent answer and a strong negotiation position to the initial question of how
the offer price was determined.
- Simplifies the negotiation process and expedites the sales process.
- Options for determining the “value” of your business
- Basic Opinion of Value
A realistic range of value based upon the company’s most basic financial information and our
experience in selling similar businesses. It will give you a general idea of the price of the
company in the marketplace and provides clarity for your initial step in business transfer:
Making the decision to buy or hold.
- Business Valuation Report
A technical analysis of the business, utilizing current business transfer, comparable regional and
national selling prices, and current industry trends.
- Why use Coffey Owens Group for the valuation?
One Stop Shop. We provide the highest professional levels of services in all aspects of your
buying needs. We will work closely with your CPA.
The more people who know the business is being sold, the greater the risk of not purchasing
the business for the most realistic value.
Coffey Owens Group is able to provide valuation services at a fraction of the price of Merrill
Lynch, Geneva, and Gulf Coast etc.
Many brokers will create a valuation that simply mirrors or exceeds the seller’s expectations,
simply to “get the listing”, and hoping the “right buyer will come along. The single greatest
reason for a business not selling is that the asking price is unrealistic.
With a Master in International Management degree from the Thunderbird Graduate School of
Business and as a Certified Business Intermediary, Guy Coffey performs the valuations for
Coffey Owens Group.
Guy Coffey’s experience includes mergers and acquisitions/financial analysis with such companies
as Waste Management Inc., Deutsche Telecom and the German aerospace industry. In addition
to being a manager in these endeavors, he was responsible for performing the analysis of
companies for acquisition.
Succinctly put, Guy Coffey’s experience, educational training and strong skills in the area of
financial analysis, coupled with his unique ability to identify and communicate positive,
individualized solutions has enabled him to be recognized as a leader in business valuation