Help!!! I don't know how to place a bid to buy the business where I work?

Question

I want to buy the business where i currently work and i was told to place a bid but i don't know how. I do know that it need's to be in writing but i don't know the format and wording i need to use i brought program to help me write my business plan but i was told a business plan and a bid are not the same. so i need help can any one help me with this please. thank you

I was told that I need to write a bid to buy the place where I work but I don't know the format that I need to use to do this I have never had to place a bid for anything before so i'm lost I have started on my business plan. I know what I want to bid but I don't know how to write it. please help. NO SMARTALIC ANSWERS PLEASE I'M NOT DUMB I JUST WANT TO DO THIS THE RIGHT WAY THE FIRST TIME. thank you

Answer 1

It seems to me that you are not ready to own a business if you do not understand the economics of the purchase. A business is comprised of things it owns( Assets), things it owes( Liabilities ) and the difference ( worth ). All three are the result of buying or selling products or services. If you want to buy you place a Bid( The amount you are willing to pay) for the business.The bid depends on what is sold, how much of it. what it cost for the productand labor, and what is left( profit).That is as simple an explanation there is.

Answer 2

I am a business broker and can give a few tips. First, how are you going to finance the purchase if you do make an offer? If you have that worked out, you need to draw up what is called a Letter of Intent. This will spell out point 1,2,3,4 of the terms of your offer including various contingencies to your offer (i.e. financing, time to review the financials to make sure the business is making money and can cover your debt service payments). If you are investing money into this venture, it is going to come at a significant risk to you and you should be sure to know what you are getting into. A few hundred dollars to get the advise from an Attorney will be crucial for you to make it through the process with your head above water. Bottom line, the Letter of Intent does not have to be technical, leave it open ended (you can back out before the final Purchase Agreement is drawn up and signed by both parties), and if the general terms are agreed upon...get an attorney to help you the rest of the way. Good luck.