Process for buying a business: the indicative offer
You already have identified the best business to buy, started the acquisition process and met the seller. Now, if you are interested in learning more about the company you want to buy, it is time for you to make a move and present an indicative offer.
Indicative offer advantages
When writing an indicative offer, the most important advantage you have is that there’s no juridical implication.
Moreover, the indicative offer shows the buyer intentions and what the seller can expect from him. The seller needs to get the indicative offer to decide if he wants to start the negotiation and understand if there are good chances to close the deal.
For buyers, the indicative offer also represents a great way to show that they are reliable.
Indicative offer content
When writing the indicative offer, you are indicating an approximate price range, whether you are going to acquire the company buying shares o paying full price, and when you would like to sign the Letter of Intent. It will also help you to prepare a calendar with the steps you need to take to close the transaction. At the same time, it could be a vague document, because its goal is writing a first proposal to start the negotiation process.
Many business owners aiming the sell their business told us they were really impressed when they received the indicative offer, especially because it gave them a great motivation to start the negotiation business. Business owners usually sell their company once in a lifetime and buyers have to pay attention to details and make sellers feel important.
Indicative offers could also have an unexpected impact on business owners that weren’t interested in selling their business yet. If you are interested in buying a company and you are not sure whether it is on sale or not, think about it!
The process of buying a business is a long one, in which there are moments of intense emotions, of breakdowns,of crisis, in which it seems that the operation has reached a total impasse. As advisors who have taken part in numerous operations, we know that it is a question of tenacity, of not giving up, of looking for creative formulas which resuscitate the operation time after time until we achieve our goals. If you are looking for a company to strengthen your competitive position, don’t hesitate to contact us!