The best way to ensure that your purchase of a business will go smoothly is to get help from people with the knowledge and experience necessary to keep you away from common pitfalls. When you buy a business, a standard due diligence process can encompass 100 or more legal, logistical, and finance-related items. On your way to becoming a new business owner, consult with qualified individuals in the following professions, and you should find yourself ahead of the game.
Begin the process by speaking with an accountant or other financial professional who can evaluate the amount you can reasonably afford to spend and assist you in making your financial profile more attractive to lenders.
A skilled attorney is a must-have for your prospective purchase. While you are not required to have legal representation, experts advise not cutting any corners here. Your attorney should be able to draft contracts and agreements vital to moving the process along and can steer you around complicated legal issues that can kill a deal.
A business broker is the person best qualified to present you with the widest range of possible companies that fit your needs. Your broker can be invaluable in exploring financing options and obtaining the cash or credit you will need. A broker can also serve as a needed intermediary between you and the seller.
As you prepare to make a final decision on your business investment, bring your accountant back on board to help you sort viable purchases from problematic ones by going over each business’ financial records. Your attorney and accountant can also help you uncover any liens or lawsuits filed against the business you hope to purchase.