Discussion On What Needs To Be Done

skatss · 04-29-2008, 08:05 PM

I've been thinking of buying into an existing business but I'm a little confused. I know I need a lawyer and a ton of other things but I don't know just what. I don't want to just put my trust in one person and would like to know what to expect. It seems like such a big thing to me that I'm scaring myself into not doing this.

How hard is it to buy a business and what are the most important things I need to know?

corporatefactors.net · 05-01-2008, 07:51 PM

This is a huge question and can vary based on the industry of the business.

Are you buying a restaurant or a manufacturing company?

A lawyer will ultimately help you with closing concerns, agreements and should go through a due diligence checklist.

It's always good to buy a business in an industry that you know cold.

Some of the post popular ways to buy into a business are equity ownership or a basic partnership etc.

CF

cassie · 05-02-2008, 11:36 PM

Besides a lawyer, I would think a CPA would be as important to determine the profitability of the company. Besides that a CPA can conduct an audit of the company you are looking into to help evade fraudulent business practices by the existing owners.

ebonyeyez · 05-16-2008, 11:37 PM

its not hard to buy a buisness its just stressful make sure you know the objective of the buisness and have a profitable market in mind.

FatMasterZ · 05-21-2008, 04:11 PM

I had a family member who purchased an existing business a few years ago, and has struggled ever since... Often times people will sell a business because it is easier than loosing everything... but in fact, you're buying a lame business. Often you'll hear excuses like "retirement" or whatever... but ultimately, it is an unsuccessful venture.

I'd recommend in most cases starting a new business and then just buying property and or assets of some previous company if you want to use some of their "stuff" (building, employees, inventory, etc.)

puchchu · 06-12-2008, 03:36 AM

The most important thing you to know is the background of the business which you are going to buy. Yes, you cant believe on just a person, you should consult with many people but never forget you are the one who should take decision.

bubble · 06-17-2008, 04:25 AM

Ultimately you need to do research, research and more research. A good starting pint would be to have an accountant look over the books to give you an idea as to how the business has been performing over the last few years.

But I agree, the sort of information you require does depend on the type of business you are looking to buy.

elvenrunelord · 06-24-2008, 08:11 PM

that all records of the business are completely transparent. Ask around in the neighborhood and find out what the opinion of the business and its owner is currently. This well give you some information on how hard it is going to be to run this business in the future.

Lissy · 07-06-2008, 05:19 AM

I will second what FatMasterZ said. There is a reason why they are selling a business. It may be retirement, or it may be because the business is a mess and they are losing money. That's why research is very important. If you buy locally, it is usually easy to determine how the business is doing - people know and they will tell you, or you can see for yourself.