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The Buying Process

The steps to buying a business

What type of buyer are you?

Over the years the enormous amount of enquiries that the Aldes group have received from potential buyers can be categorised into three distinctive groups:

  • The Investor

    These are individuals, consortiums or companies searching to invest into a business where they are not actively involved and their main aim is a return on investment.
  • The Entrepreneur

    These are true entrepreneurs and normally are current owners of businesses looking to either expand or diverse their operations. In most cases they also come from a family of entrepreneurs.
  • The "New" Entrant

    These are individuals who are looking to exchange the stability of working for a fixed salary for the excitement and extra earnings of owning your own business.

Through our process of buying a business we first encourage you to identify where you fit in and then we assist you in finding the perfect business or opportunity that meets your needs.

1. Compile a business acquisition plan

As a potential buyer of a small or medium business you need to know who you are and what you are looking for. It is important that you know your strength and weaknesses and it is always advisable to keep to an industry where you have relevant experience.

Your plan will typically tell you what Type of business you require, in which Area it should be located and what the Income of the business should be. You will also have to plan who you will use to assist you with your acquisition.

2. Select an experienced business broker

Business brokers and their operating methods are governed by the Property Practitioners Act. The act requires that business brokers are registered with the PPRA and also holds a current Fidelity Fund Certificate. Business Brokers are also required by law to abide by the PPRA code of conduct in order to ensure the protection of the customer.

Apart from the above Aldes Business Brokers also work as a network of brokers servicing all their clients from a central database.

3. Sign a non-disclosure agreement

The details and information of any business for sale is always treated as highly confidential. Your professional Aldes business broker will never forward you detail on a business without you signing a non-disclosure agreement. This is done to protect the details of the business and is expected of us from the seller.

4. Set realistic expectations

It is important that you acquire knowledge of what is happening in the business market and your Aldes business broker can assist you with aligning your expectations to market realities. Aldes Business Brokers sells more businesses than any other brokerage and has a vast amount of information on what is going on in the market.

5. Start the search

Your Aldes broker will help you with this. Once he/she has a good idea of the type of business you require he will be able to present to you a list of the relevant opportunities available that meets your needs/expectations. Using our sizable database of businesses for sale and working as a network of brokers you can expect excellent service.

6. Meet with the owner

Once you've decided on a business the first thing that you should do is to visit the business and meet with the owner and get a "gut feeling" of the business. Your Aldes business broker will make such arrangements for you and will ensure that not only are you introduced professionally but that your concerns/questions will also be answered during such a meeting.

7. Negotiate the sale

Once you've decided to buy the business, Aldes will assist you to negotiate the sale so that all your concerns are met and your original acquisition plan comes to fruition. This is where the professionalism of your Aldes business broker comes to the fore in our effective communication back and forward between the parties, until such point as an agreement is reached.

8. Put an offer into writing

Your Aldes broker has vast experience in putting together and drawing up a Sales Agreement. You cannot expect any seller of a business to take you serious if you do not put an offer in writing and commit yourself with a deposit. An offer is not an offer unless it is in writing!

9. Complete due diligence

If your offer has been accepted the seller has now committed himself to also provide you with any further detail on the business that you might need to complete a due diligence. Your Aldes business broker will assist you in obtaining these documents and you will end of the process by confirming in writing that you are satisfied with the due diligence.

10. Raising finance/approval of lease agreement

If your offer is subject to you being able to raise the necessary finance ask your Aldes broker to introduce you to our extensive network of funding houses. During this process always keep the seller and your broker informed of your progress.

Aldes will also introduce you to the landlord in order to secure a new lease or a cession of the existing lease

  • So important is the lease that you make it a condition of purchase that your attorney first approve the document.
  • Most leases are for a three year period, with an optional further three and a rental escalation of 12 to 15% a year

11. The take over

Aldes will assist in arranging for a stock take (if needed) and a list of things to be done in order to accomplish a smooth take over.

It is your responsibility to arrange for payment of the purchase price a few days prior to take over into the Aldes Trust Account.

On or before take over date Aldes will make final payment to seller on your instructions.

Need more assistance?

If you need further assistance or have any queries contact our head office.

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+27 12 361 2690

What our clients say about us

Excellent service and advice from Anna-Marie received. Credible and honest. She walked together all the way to the end and quickly resolved all conflicts with the buyer.
I was so impressed by the friendly and professional service we received in selling our business - there is no way that we could have done this alone without Rudi White. Many thanks to you, Rudi, for being instrumental in the efficient and speedy success we had within a few short months
Hi Wynand. Myself and Zakia really appreciate everything that you have done for us during the last couple of weeks in making this sale possible. We are forever grateful and thankful for all that you have done and we look forward to continuing with this friendship that we have built.
BUSINESS SOLD! It has been quite the journey to sell our small online business, but to do it with Wynand and the Aldes team by our side, the process was seamless.

It was the second time that I had worked with Wynand and the ...
Thank you so much for everything you have done over the last few months. You have made the whole process so easy, understandable and effortless (for us). We only now realise just how much you have been running around, working at all hours and everything else that you have done to make sure we found a buyer and concluded a sale. When we first met, Frank and I immediately knew that you were our guy; and you have ceaseless...
Baie dankie vir jou!! Jy het baie ure hier ingesit en ek waardeer dit vreeslik baie.

Dankie vir die wonderlike Koper wat jy gebring het, ons het gemoedsrus in die feit dat Jaco heeltemal bekwaam is vir hierdie posisie. Ek is dankbaar dat jy en Jaco oor ons lewenspad gekom het.

Dankie vir jou mooi wense, ons is beslis opgewonde oor die nuwe hoofstuk van ons lewe en sien vreeslik uit daarna.

Weet dat jy altyd meer a...
From my first contact with Wynand, he struck me as very professional and his knowledge about the business that I was inquiring about was astonishing. He explained the process extremely well to all parties which made the whole ...
Hey Nic

I just wanted to say thank you so much for all your assistance in selling our business.

We are so grateful for the time you have taken and eternally grateful that you found us a buyer.

Take care and stay safe
...

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