Buying a Business
The start-up odds for success are really stacked up against you versus buying an existing going concern that has a proven track record.
Before you buy a business, you need to know what you’re getting yourself into, and you must understand how to properly evaluate the return on your investment and avoid making large mistakes with improper due diligence. An experienced Business Broker can help you avoid costly mistakes.
Besides learning about the financial condition of the business, you must have a thorough understanding of the intangible as well as tangible assets of the business.
If there is property involved in the sale, or if you as a buyer will be leasing the space, there are important ramifications to help set you up for success.
Some of the basic steps in a business acquisition involve:
- Signing the Non-Disclosure Agreement
- Analyzing the Information Memorandum or Confidential Buyer Review
- Speaking with the Seller and other advisors
- Meeting the Seller and touring the business
- Analyzing the financials (P&Ls, Balance Sheets, and tax returns)
- Creating and presenting the Letter of Intent
- Choosing a lender and advisory team (business transaction attorney, CPA, financial advisor, etc.)
- Performing proper due diligence
If you would like to discuss the nuances of buying a business in more detail, reach out to us at your earliest convenience or call direct (720) 436-1472.