Issues to Consider
When Buying a Business
When contemplating
purchasing a business,
you have some major
issues to sort through,
including:
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 will probably be
asked to sign a
Confidentiality
Agreement.
Letters of Intent.
Consider whether signing
an Acquisition 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're
buying — its financial
performance, assets,
liabilities, contracts,
employees, and more.
Click here to view a
sample Due Diligence
Checklist.
Definitive Agreement.
You'll need a
comprehensive definitive
agreement setting forth
the terms of the
acquisition.
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Before
You Buy a Business