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Spend Money BEFORE You Buy A Business

January 14, 2013
We routinely read articles offering advice to potential business buyers on things to consider when embarking on the process of purchasing a business – as kind of a do-it-yourself guideline. But amazed at the lack of advice given to these buyers to use experienced professionals where applicable in the process instead of ‘going it alone’ .

A question that we often ask potential buyers is: Would you buy a house without proper professional involvement and representation? If not, then why would you buy something as potentially risky as another persons business without proper professional assistance?

Buying a business is a simple process if you just want a write a check and be done with it. However, what’s complicated about the process is whether to write the check and, if so, what amount should the check be written for and under what terms. It is wise to recognize that making these decisions requires more skill and experience than any one individual typically possesses.

Okay, so what experience or skill is needed to make a wise buying decision about a business and where can you obtain this assistance?

When purchasing a business, you should consider: the products and services offered by the business; the markets served by the business; the business’ management team, personnel and internal operations; the condition of the business’ books and finances; the nature of any contracts, agreements, or other obligations that the business is bound to or possesses the right to; a fair market value for the business; and the purchase terms for the business that can be supported by the resources of the business and the buyer – just to mention a few.

To properly evaluate these things, a potential buyer will, at a minimum, require the expertise of an attorney,an accountant, a business appraiser, an experienced business broker, and a qualified business consultant.

All in all, get the most advise as possible. Our listings are changing daily, view them often at:

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