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Small Businesses in Pima County - appx. 250,000
Small Businesses in Metropolitan Tucson - appx. 25,000
Hispanic Owned Businesses in Pima County - appx. 8300
Arizona Daily Star 3/26/06
American Indian Owned Businesses in Pima County - appx 760 Arizona Daily Star 9/18/06
How do I choose a Business Broker?
Be sure to choose a Business Broker who you feel comfortable talking with about your personal and business financial situation. You will be working closely with your Broker for a 6 - 12 month period. Be sure that your Broker will share listings with other brokers in the community. Choose a Business Broker who has business ownership experience and is networked throughout the community.
What does a Business Broker do?
Business Brokers have real estate licenses and represent the buyer or seller (or both) in a business sales transaction.
As a seller - a business broker will market your business confidentially and communicate with each qualified potential buyer. This saves you time where you can work on your business rather than working with the many buyers who may be interested in your business.
As a buyer - a business broker can search for a business that meets your needs. A business broker assists you in making an offer on a business and creates a purchase agreement. The agreement is reviewed by your attorney and once signed by both parties, collects the deposit check and opens an escrow account.
What is the process of "buying a business"?
Your business broker will assist you in preparing a Letter of Intent (LOI)that will detail your offer. The offer will contain many details including the purchase price, the contingencies of the sale, and the proposed carry back loan, if any. Your offer is made with an earnest money deposit (generally a check made to a Title Company held by your broker).
Your broker presents the LOI to the seller's broker. The seller has the ability to counter your offer, ignore your offer or accept your offer. If accepted, escrow is opened right away. The purchase of a business generally takes 30 - 120 days to complete.
Download "What are the steps to buying or selling a business".
What is "escrow"?
An escrow is an account opened at a Title Company to represent the interests of you and the seller. All copies of necessary documents are filed in escrow. The escrow agent will run the title reports and will be notified when the contingencies are completed. The title company also provides title insurance to the buyer. The escrow agent will hold the funds and disperse them to lien holders and the seller at close of escrow.
What is "due diligence"?
Due diligence is the period of time in which the buyer's analysis of the business is conducted. This is the time range in which the contingencies are fulfilled. Contingencies can include the ability to obtain financing, review financial statements and/or review key contracts.
How do I know what my business is worth?
Your Business Broker can assist you in determining the value of your business for sale or purchase. There are general guidelines on the valuation of a business for each industry. A more detailed Business Valuation can be completed for an additional fee.
How do I finance the purchase of a business?
A business can be financed with a business loan or with a Seller Carry Back Loan. A Seller Carry Back Loan is generally for a five year period, and is typically used for businesses that do not have the collateral for a conventional bank loan.
A business loan requires that the buyer have collateral in the business or other assets. Generally, twenty percent of the purchase price is required as a down payment. Loans can also be guaranteed by the Small Business Administration. Some financing companies focus on particular industries. Ask your Broker for referrals to a lender in your area.
How do I list my business for sale?
Be prepared prior to meeting with a Business Broker. Come to the meeting with 3 years of income statements and balance sheets. Provide your broker with employee payroll detail and any brochures or advertising pieces that describe your business. This will assist your Broker in creating the Business Information Report that is sent to potential buyers.
Remember - your business name is kept confidential in general advertising until a signed Confidentiality Agreement is sent to the Broker by a potential buyer. A typical business listing is six to twelve months.
What are the Chattel Security Agreement and Uniform Commercial Code-1 Financing Statements?
The “chattel security agreement” is a list of the tangible assets of the business. This will usually be the furniture, fixtures, and equipment that are the tangible assets of the business. The intangible assets are things like a loyal customer base that can be lost if the new ownership does not provide the service received from the previous ownership. The chattel security agreement does not become part of the public record, but is necessary to document what the tangible assets were at the time of the business sale.
The UCC-1 documents that the seller is holding a “perfected” lien on the business. This document is filed with county government and is part of the public record. If there is a default, this document indicates that the business seller will be first (after tax liens) to receive proceeds from the sale of any business assets. | 
