Buying A Business
Buying your own business is a big step!
If you are an individual considering the purchase of an existing business, you may be doing some soul-searching about your own capabilities. If you are a business owner considering expansion through acquisition, you may be unsure of how to carry out this unfamiliar responsibility. Buying a business can be overwhelming for the novice buyer.
It is not easy to find a successful business that an owner is willing to sell at a fair market value. The following information will lead you through the buying transaction and point out problems and opportunities.
There are many complexities involved in a purchase, and many pitfalls for the inexperienced buyer. A successful purchaser develops goals and plans, identifies and locates candidates for purchase, evaluates selected companies, formulates the purchase proposal, obtains required funds, negotiates and closes the purchase and integrates operations after closing.
Many buyers decide to buy a business for the wrong reasons or they chose the wrong business to buy. They may have been laid off and, as a result, become disenchanted with corporate life. They may have been forced to retire early or they may feel that they can make more money on their own. While all of these reasons are legitimate, they are not sufficient to warrant a business purchase.