13 Critical Important Questions To Ask Before Buying A Business – Part 5

When you search for a business to buy, you’ll find that it takes much time and energy. You must be prepared to be patient and to spend some money in the effort. You’ll use several sources of information in your research: newspaper and trade journal, ads, business brokers, bankers, lawyers, accountants, and people who are already in the business. You can also try online printing of some ads in the net.

Most likely, if the broker doesn’t have a site, he or she is behind the times. The Internet is a powerful marketing tool for Business brokers in bangkok, according to Cooper. Is the site well-written? That’s another way to gauge a broker’s competence, he adds.

Your broker should be able to explain business valuation to you clearly and if he or she can’t, then how can he or she explain to a buyer what your Business brokers online is worth? Make sure your broker is confident in this area.

If you are buying a successful business you are buying not only a thriving business but you are also buying a business which is based on the previous owner’s reputation, this can be an advantage but can also leave you with big boots to fill so make sure you feel totally up to the job.

So what does all this mean? Simply put, you need a strategy that allows for leadership, growth and leverage at the same time. You do this by creating and applying systems as you transition from leader to guide. Think about what this means. You maintain leadership control as you build leverage all while increasing the value of your company. Your ultimate goal is to separate your personal workload from the productivity and success of the company.

Are there mandatory meetings and training for the owner or his staff. Each major franchise has different elements like this in the contract they make with the buyer. These are the details that should be looked into before purchase. How do you do this and where are good places to seek the answers?

Contract & Closing – Following a successful due diligence period in which all of your concerns have been addressed, a contract will be drawn up between yourself and the seller of the business. Typically this is done between your attorney and that of the seller. (Again, Vested has relationships with many attorneys if you need a referral). If the contract meets all contingencies you have set forth, it can be signed and a closing date set. At closing, the business will officially change hands and you will have completed the buying process. Keep in mind that our brokers are here for you every step of the way to ensure that you are making informed decisions.

Of course the business broker will try to get you to eliminate most of these “subject to’s” because they get in the way of an easy sale. But be sure to include enough outs to limit your liability. You will want 2 to 3 weeks to review the books and financial records. The Seller must agree not to look at any other offers doing this time. You will find that most business brokers will want you to lift your contingencies in around 5 days under normal circumstances. Remember, you are not operating under the norm, so go for the longer period, even if you only get 2 weeks. You might need this extra time to put your financing together. Your no money down strategies sometimes takes a little longer.

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