What's the Best Type Of Entity To Form For Your Small Business?
323-985-8185
California Real Estate Co.
Buy A Business
Become the boss of you
WHY BUY A SMALL BUSINESS
WORK WITH
PASSION
We can find a business that matches up with your interests and financial goals.
REDUCE
RISK
Purchasing an existing business with a revenue stream is less risky than starting a business from scratch.
HIGH
RETURN
Companies on the S&P 500 have an average P/E Ration of 28.6. Most small businesses have a P/E Ration between 2-3. That's at least 10x better!
GET A LOAN
Getting a loan to buy an existing business is easier than getting a loan to start a new business.
WHY BUSINESS OWNERS SELL
There are a lot of reasons why someone sells a business. Sometimes the owner wants to retire or do something different. Maybe the owner is moving out of state or selling for personal reasons.
Helping new owners take over local businesses supports the local economy and helps the community thrive.
THE BUYING PROCESS
00
Initial meeting
We do a video call to see what most interests you and to answer any questions. Then we put together a list of target businesses and/or industries, and line up lenders that are prepared to make a business acquisition loan for the size and type of business you're interested in.
Email info@calreco.com to request an initial meeting.
01
We present you with businesses for sale
We find businesses that match your criteria and will present you with the general location, revenue, current net income, and a few other details. Sellers sometimes wish to keep the sale confidential so at this point we may or may not be authorized to share the name of the business.
02
Do a deeper dive
When you're interested in learning more about a business you can sign a nondisclosure agreement and we'll request more information. We'll get the name and address (if we don't already have those) as well as detailed business and financial information for you to review.
Then we'll provide you with our analysis of the business and discuss it with you.
03
Make an offer
or move on to the next business.
We'll share our thoughts about value and about potential purchase strategies. If you want to make an offer we'll draft a contract and present it to the seller.
The offer would be contingent on your successful completion of due diligence.
04
Due diligence
Once in contract you'll have the opportunity to do additional research to determine if the opportunity is right for you. To help you get started we provide an initial list of things to request from the target company.
Due diligence may include financial analysis, site visits, interviews, consultations with advisors, and whatever else you need to evaluate the investment.
After reviewing everything you will have the opportunity to walk away (with no penalty) or to move forward with the purchase.
05
Secure business loan
Often a buyer will only need to put down about 20%.
If you'd like to use a loan to purchase the business we help line up business loans.
(We begin prequalifying the business for a loan up in Step 02.)
06
You take ownership
We close escrow and you begin your next adventure!
Often times when you buy a business the Seller is willing to stay on and provide training for an agreed upon period of time.
OUR BUYER "FEES"
We don't charge you.
Sellers pay a commission to their agent, and when we earn half of their agent's commission.