Dear M & M:
I am considering purchasing an existing business. What should I look out for?
Whether you just want an overview of the business buying process or you’re ready to acquire an existing business, you know you’ll need to finance, negotiate and structure the deal. Buying or selling an existing business has many parts. Here are some of the areas you need to pay attention to if you are buying or selling any business: finding the right business (are you qualified to run it) – analyze the seller’s numbers (do sales and profits make sense in comparison to selling price) – make sense of the tax issues (what are the tax consequences for the buyer and the seller) – prepare and sign a sales agreement (what are the terms, conditions, understanding every word in the contract so you know what you are buying or selling) – close the deal – prevent the seller from competing against you and include how long the seller will be available to work with you after the sale to get familiar with the daily activities of the business – be ready to work with lawyers, accountants, brokers, insurance, bankers, adjusters, inspectors and other professionals to help you along the way.
To ask your questions: Call the Small Business Development Center(SBDC) at Cochise College (520)-515-5478 or email firstname.lastname@example.org or contact the Sierra Vista Economic Development Foundation(EDF) at 520-458-6948 or email email@example.com