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- Business Plans
- Financing options
- Development support
- Professional experts available
- Growth and expansion of existing business
Key considerations when Buying a Business
Type of Deal - What kind of deal will it be - purchasing the assets of the business or
purchasing the stock?
Confidentiality - If the seller will be sharing confidential information, such as financial
statements and customer lists, the buyer probably will be asked to
sign a Confidentiality Agreement.
Letters of Intent - Consider whether signing a letter of intent makes sense before you
invest a great deal of time and money.
Due Diligence - Make sure you have thoroughly checked out the business you are buying,
its financial performance, assets, liabilities, contracts, employees and
more. Conducting proper due diligence will help the buyer avoid the
following problems:
- Purchase price of the business turns out to be too high
- Misunderstandings as to the type and condition of the business being bought
- Bad financial situation
- Bad management
- Pending lawsuits
- Contingent liabilities
Doing Your Homework - Following is a list of some of the main documents you should
expect to receive in the course of your due diligence:
- Key contracts
- Financial statements
- Customer lists
- Employment agreements
- Minutes and consents of the board of directors and shareholders
- Confidentiality and Invention Assignment Agreements with employees
- Corporate charter and bylaws
- Litigation-related documents
- Patents, copyrights, and other intellectual property-related documents
- Licenses and permits related to operation of the business
10 steps to Selling your Business
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Have a valid reason to sell.
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Do not wait until you have to sell for economic or emotional reasons.
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Gather the information needed to market and sell your business:
Be a part of the marketing team:- Three year's financial statements;
- Tax returns for three years;
- List of fixtures and equipment;
- Approximate value of inventory;
- List of employees;
- Customer lists;
- Copies of the lease;
- The franchise agreement (if applicable);
- List of loans with balance and payment schedule;
- Copies of equipment leases;
- Names of outside advisors (business broker, lawyer, accountant..
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Maintain confidentiality in your day to day business activities.
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Think like a potential buyer.
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Do not let things slip because you are selling the business.
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Engage professionals who understand the sales process.
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Be patient and study every offer carefully then make a counter offer.
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Help create a win-win situation for everybody involved.
