subject: Essentials Of Buying Or Selling A Business [print this page] Essentials Of Buying Or Selling A Business
If you are a good entrepreneur, you always build with end in mind - selling a business. Your intention could be pass on your business to your family or partners. If you are looking to buying a business you equip yourself with information about variations, market conditions and how to work with business brokers.
When most people think of starting a business, they think of developing a business from ground level.Buying a business is less risky than creating everything from scratch. When you are buying a business you simply take over running operations that's already brining in revenues and profits. Customer base is already established and you get all employees who know their business. In addition to this, it may also give you patents, copyrights, business assets.The first step in buying a business is to choose the right business for you. The right place for you is looking at the industry that you are familiar with and/or understand. Also think of business that you have interest in and have the required skills and expertise.
Next step in buying a business is to choose a geography where you want to buy a business. Once you have the chosen the type of business and geography you can search for business yourself or you can use the business brokers. If you are buying a business for first time, giving brokerage is worth the money.If you are running a successful small or medium sized business, you must have thought of selling your business with its worries and responsibilities. You must have also fantasized about enjoying your vacation in a nice island.
Selling a business is not without efforts. Enough care should be taken while formulating the selling process. Hire a well experienced appraiser. Your appraiser will request for few documents like adjusted balance sheet, document that reveals about your discretionary income.
Next document that is required while selling a business is the offer memorandum which contains a detailed description of your business.
Finally you will need a non-disclosure agreement that you will request your forthcoming buyers to sign before you discuss with them about your company or share any documents with them.Your broker will help you find qualified purchasers as the deal of selling a business proceeds. As you start getting offers, you can ask your company or personal attorney to go through the documents that you are expected to sign.
Once an offer is made and your buyer accepts the offer, communicate the deadlines and milestones when each step towards closing the deal would occur.
