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!!!