Buy A Business Frequently Asked Questions

Why should I buy a Nashville business instead of starting my own?

There are a number of reasons why purchasing an existing business has a better risk-to- reward ratio than starting a new one: These include a proven concept and/or product; with an existing business, you can already see if the business concept works. If the location is established, and employees are in place, you’re also likely to receive a quicker return on your investment.

Why should I use a business broker to buy my Nashville business?

There are several reasons why you should use a business broker: Brokers can introduce you to many more businesses than you would find on your own. Brokers can help structure the offer and act as a negotiator/buffer between the buyer and seller. You can also leverage a broker’s insights and tools; our Agreements, for example, offer a level of buyer protection that reflects more than 20 years of experience.

Why First Choice Business Brokers?

In addition to our experience, FCBB offers a nationwide network of offices, great familiarity with the Nashville market, and some of the most highly-trained business brokers in the industry. Our brokers are experts in the fields of business evaluation, business sales, business marketing, and buy/sell negotiations.

Will I be able to obtain financing to buy a business?

These days, bank loans are fairly difficult to obtain – especially without prior experience in the business you’re hoping to buy. As a result, seller financing has become increasingly regular.

How do I make an offer on a business I want to purchase?

When you work with FCBB, you’re able to use our time-tested, expertly-crafted agreements. These agreements cover everything from the basics to more complex issues that we’ve encountered over the last 20 years; our agreements are designed to protect all parties involved in the transaction.

What is due diligence?

Merriam-Webster defines due diligence as "research and analysis of a company or organization done in preparation for a business transaction." With regards to buying a business, due diligence means making sure that the actual business is the same as the version that was originally presented to you.

Do I need an attorney?

While having an attorney review the purchase documents is optional, your FCBB agent will likely suggest it.

How does a seller come up with the asking price?

If the seller is represented by a business broker, the price probably reflects one or more industry-suggested pricing methods. For example, the price may be based on a multiple of income or a combination of income and assets. Business brokers do their best to price a business so that it makes sense to a buyer while fulfilling the seller’s wishes – a win-win.

Aren't most businesses for sale losing money?

No. There are many reasons why Nashville businesses are put up for sale, including retirement, disability, death, divorce, partnership dissolution, and even just burn-out.

Have additional questions about buying a Nashville business?

Call First Choice Business Brokers at 615-450-0410 or submit the form below. We’ll be happy to schedule a free consultation and discuss how we can help you buy a business that will satisfy your personal, professional, and financial goals.