8 Tips For A Business Buyer Part 1

What should you know, before you buy a business? On today's episode, I am going to give you part one of a two part series, 8 Tips to Know Before You Buy a Bu...

1. Use A Business Attorney 
It is super important, to use an attorney but most important to use a business attorney, who is familiar with small business transaction work.  A great business attorney, will make sure you are being thorough with your due diligence.

2. Make Sure You Purchase the Assets of the Business, commonly known as an asset sale. This is preferable to purchasing the owner's shares of a corporation which is known as a stock sale. In an asset sale if the seller owes money or is being sued you will not assume those liabilities.

3. Make Sure the Seller, Will Give A Training Period to the Buyer, for a Suitable Period of Time After Closing It is important that the owner spends time with you post-closing to meet the customers, teach you the systems of the company, and introduce you to the employees. 

4. Ask about the Security Deposit 
A buyer needs to have the cash necessary to pay a security deposit on top of the agreed-upon purchase price. It is usually a few months of rent and the amount of the security deposit can add up in high rent cities.