5 Steps to Buying A Business
Buying a business is a huge commitment. Business ownership demands an incredible amount of time, effort, and money, and you constantly need to balance the risks and demands to ensure growth.
Below are five crucial steps you should take if you are planning on buying a business.
1. Do Your Research
Just like any large purchase, you should spend significant time researching and obtaining as much information as you can.
Find out about the business’ strengths and weaknesses – you need to know exactly what you are buying, and do your best to foresee any challenges.
- Financial statements
- Lists of customers and suppliers
- List of employees, including a breakdown of salaries and years of service
- Reports of any major contracts necessary for the operation of the business, including the lease of the premises
- List of all equipment and assets of the business
- Any related debts, licenses and liabilities.
Now, not all business owners are going to happily toss you this information the minute you ask. They may even insist that you sign a non disclosure agreement to prevent you from using it for any other purpose other than buying the business. At this stage, you should have someone review any document that you are going to sign to make sure you are not binding yourself to some undesirable legal commitments.
2. Determine a Structure for the Purchase
3. Negotiate Other Terms
4. Have the Legal Documents Prepared
5. Ask an Expert
There are many other considerations to take in account when purchasing a business, and this list should not be considered comprehensive. By going through us, we will protect you from as many risks as we can, and help provide you with a smooth transition into becoming a business owner.