To Buy a Business Proposal Sample

What is a business purchase proposal?

To-buy-a-business proposal or a business purchase proposal is a proposal document that is prepared by a company for the client company. In this proposal, the company presents its offer to purchase the client company’s business.

The client company may want to sell its business for many reasons, such as:

  • The client company is facing financial difficulties, which it cannot sustain, as it may be on the verge of liquidity or facing continuous losses.
  • The client has limited operational expertise left due to technological changes.
  • It does not have enough resources to compete with the other competitors and stay in the market.
  • The selling company wants to invest in another business venture and so wants to sell off the current one.

When the business is not beneficial enough and selling it off is a better option, the client company may seek proposals from different companies and select the one that is most advantageous to them. Therefore, when a company is preparing the business purchase proposal, it should pay consideration to many points, such as:

  • The proposal is like a marketing and promotional tool of the company so it should be utilized in a way that the proposal would get accepted by the client.
  • It should be comprehensive, professional and formal.
  • If the statements and facts are persuasive enough, the chances of acceptance are higher.
  • The benefits, especially the financial ones, should be clearly stated and emphasized.
  • The cover page, which is usually the first thing to be glanced at, should be catchy, having all the relevant details so that, it would entice the client to go through the whole document as well.
  • The terms and conditions need to be practical and mutually beneficial so that the proposal has a high probability of acceptance.

Choosing a template…

If a company decides to choose a template for preparing its business purchase proposal, rather than designing itself from the scratch, it can easily download one and customize it, as per its requirements and the demands of the client. These needs and demands may vary from client to client which indicates that a proposal needs to be a customized one for every client, having varying details. However, at the same time, the general details that are included in all the business purchase proposals are the same, which include:

  • Executive summary/introduction.
  • Company profile.
  • Purchase offer with all the relevant details, such as what asset would be bought and what liability would be taken on, including the financial figures, rates of depreciation, etc.
  • Benefits, both financial and non-financial.
  • Advantages, including individual and mutual advantages.
  • Suggested date of effect.
  • Convincing and wooing statements.
  • Terms and conditions.

If the client finds the company’s proposal as worth accepting, it means that the company’s efforts in terms of cost and time have paid off. However, if the proposal gets rejected, not only the company has to suffer but it may have to prepare another proposal for some other client or seek other opportunities for investment.

Sample Proposal Template

Proposal for the Purchase of A-Pharmaceuticals

Prepared For

Mary Martha
New York, NY 40333

Prepared by

Martin Smith
XYZ Enterprises Limited
38190 11th Ave.
New York City, NY

Dear Ms. Martha,

We are interested in negotiating an agreement for the purchase and acquisition of all the business assets, tangible and intangible, including furniture, fixture, and equipment, stock in trade, parts, and supplies, owned by you in connection with the pharmaceutical business of A-pharmaceuticals.

We have assembled a team of our senior management with an emphasis on the execution of this process successfully and efficiently. We also have a track record of successful completion of numerous strategic acquisitions over the past several years.

XYZ Enterprises Limited

Executive Summary

XYZ Enterprises Limited is one of the leading pharmaceutical distributors in the Country. We have global businesses that research, develop and manufacture advanced and innovative medicines, vaccinations, and customer healthcare products. Over time, we achieved our goals and our partner and customer base grew extensively.

Business Description

XYZ Enterprises Limited was founded in 1990. We aim to invest in the best possible system, infrastructure, and staff, to guarantee the most advanced and modern facilities.

Market analysis

The pharmaceutical industry plays a vital role in creating and developing medicines to treat diseases and enhance the quality of life of people. The factors that influence the growth in the health care market include political changes, economic and social changes, legal, technological and environmental changes. Some factors that are boosting healthcare market growth are:

  • Lowered regulatory obstructions for new drugs in the United States
  • Use of clinical trial data in trial simulations
  • Lowered prices of drugs and reduced taxes in the United States

Problem Statement

Today, pharmaceutical drugs have to deal with a huge number of laws and regulations. This affects the size and growth rate of the market. Together with the high research & development costs involved in creating new drug solutions, these act as a hurdle for small pharmaceutical companies. Our company is fully automated, with a centralized computer database and meets global standards to produce the highest quality products.

Company Expectation

Our company looks forward to several opportunities in the future. We truly believe in creating respectable relationships with our working staff, our partners, and our customers. This motivates us to find ways to exceed their expectations and expand our business. At the end of the fiscal year 2018, the Company’s net equity is estimated to be $9,610,107/-.

The proposed purchase price for A-Pharmaceuticals is $5,000,000/-, with $1,500,000/- to be paid at the closing. Transaction and closing fees of $15,000/- have been estimated, resulting in a total purchase cost of $5,015,000/- for the Company. We anticipate the amount of the first installment to be paid in cash and the closing of the deal will be conditional to 90% of A-Pharmaceutical employees accepting to work with us for the first 3 months.

Financial history

Our company would like you to allow us to complete our examination of your financial, accounting, and business records; also, the contracts and other legal documents. We have assembled a team of senior management to focus on the successful execution of this process.

Transition Plan

We are keen to complete the acquisition process as quickly as possible, so there is less delay in productivity and the inevitable demoralization that occurs while the change is underway. We would attempt to complete and get the Purchase Agreement signed before August 2019.

Assets Acquisition: Acquire A-pharmaceutical’s right to all of its property rights and tangible assets.

Employees: Staff pharmacists and technicians continue working for us.

Communications: Patients and other health professionals associated with A-pharmaceuticals, if need to contact the pharmacy, reach us with minimal effort. Our telephone number and fax number will be provided to them.

Pharmacy Management System: Get access to prescription records in electronic format so that arrangements can be made to a pharmacy management system to facilitate integration with our health care systems.

Inventory: Associated inventory will be acquired.

Real estate: Transfer of lease will be made. This lease will only be for a limited time while we build out our own location.

Valuation: Company is valued based on the value of assets in the business, to date. Events and conditions occurring after that date have not been considered.

Terms & conditions

Our designated team will see that the information that A-pharmaceutical representatives provide, is complete and accurate to the best of their knowledge.

  • The financial statement information about A-pharmaceutical operations and financial conditions must be in accordance with generally accepted accounting principles.
  • Information supplied by the management team will be further verified.
  • The various estimations of values that are presented in this report, are not to be used out of context.

Upon the acceptance of these terms, we will be ready to draft a formal purchase agreement and hand it over to you for your final review.

We look forward to your response.


Martin Smith
XYZ Enterprises Limited

To buy a business proposal