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!!!