Buying a Business?

Before buying a business, it is best to do your research before agreeing to take over to avoid ending up with a lemon. It could be very tempting to conclude a cheap sale on the spot and be able to tell everyone that you are now an entrepreneur.

In choosing what enterprise to buy, make sure that it is right one for you. Select one that you are knowledgeable and passionate about to avoid being duped by opportunistic employees, suppliers, and even customers. It is also recommended to consult other people who own he same kind of business to draw on their experiences to make an accurate assessment and forecast for your own business. You could also avoid making costly errors in your decisions by getting the help of an attorney and accountant to consult with every step of the process.

It is also strongly recommended to obtain and carefully examine the seller’s financial statement and records. Your lawyer and accountant can look into the profit-and-loss records, tax returns, balance sheets, and supplier’s records for the past three years as well as into the current receivables. Have the business appraised including its assets, inventory, and brand. This will provide the basis for the offer that you will make to the seller.

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