BUYING A BUSINESS

BASIC STEPS TO BUY A BUSINESS

1.  Understand the basics of the business:

• can you imagine owning a certain business?
• review the package of business information (may be subject to a confidentiality agreement)
• analyze with your agent the strengths, weaknesses, opportunities and threats relating to the business
• the next step is to view the business and meet the seller

2.  Define issues that could prevent a purchase:

• listed price and accuracy of information could be of concern
• financing requirements have to be considered before negotiations commence
• prepare a conditional offer that is not binding until all your conditions are resolved

3.  Present your offer:

• determine if there is some agreement with the seller as to price, terms and conditions
• the negotiation skills of your agent will, in many cases, determine a successful outcome

4.  Conduct your due diligence

• once a basic price, terms and conditions are agreed upon, it is time to confirm the information given to you and address the conditions in your offer
• along with the guidance of your agent, this would be the time to involve your accountant and lawyer
• if you are unable to validate any information or if certain conditions cannot be met, the deal can legally be terminated or…..

CONGRATULATIONS!!!