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!!!