Business buyers that are serious about purchasing a company and not wasting precious time understand the great importance of having a “buying a business checklist”. The lack of acknowledging and implementing this crucial business buying tool contributes to the modern day fact that today only 20% of all potential business buyers within California actually end up purchasing a small business. That said, this article seeks to inspire and promote the success of every potential business buyer of this world by providing the main items that should go into a business buying checklist.
The items that should go into that essential business buying checklist are:
Getting personally prepared. Every buyer is urged to create a comprehensive buyer profile. This profile should include a financial statement, a description of the buyer wants, and a resume summarizing the work experience of the hopeful buyer. These documents demonstrate that you are a “real” buyer, deserving of cooperation from sellers, business brokers, and agents. The information is personal, of course, and should only be shown to sellers who have a business you might want, or brokers whom you believe are honest and professional. Willingness to be upfront about your interests and capabilities will immediately separate you from the majority of people searching for business opportunities but, for one reason or another, will never complete a purchase.
Organizing a team. The purchaser who has a lawyer, accountant and a professional consultant listed on his or her business buying checklist will be in a position to move quickly once an interesting business is found. The lawyer will assist with the language and protect the buyer from potential legal problems in the contracts; the accountant will help value the business and conduct due diligence; and the certified business consultant will supply the needed business selling insights and expertise. An experienced professional business consultant from Bottom Line Management, Inc. has decades of industry expertise to help buyers successfully proceed in any business purchase.
Respect the sellers’ requests for confidentiality. Be willing and ready to sign a non-disclosure agreement. Showing that you are honest and “above board” will earn the cooperation of most sellers.
Promote win-win in negotiationswith someone whose business you would like to buy. The purchaser who wants to beat a seller in the price and terms aspects of a deal, might find he’s taken “round one”, but then when extra help is needed — a bit longer to pay off the note or advice about some confusing aspect of running the company — the seller will be unwilling to accommodate.
Pay attention to the details when a transaction is in escrow. After all the work and excitement of buying a business and completing the essential buying a business checklist, it would assuredly be a great shame to lose a deal over some issue that might have been avoided had you noticed a developing problem and taken action right away. That said, every business buyer must remember to remain certain to the end that the escrow holder is competent and is doing everything that was promised.
Buying a business is not rocket science, but it can be rather complicated and detailed. Make sure to be fully prepared when buying a company by making a business buying checklist armed with the buying tips from this article, as well as the over 30 years experience from employing a certified professional business consultant from Bottom Line Management, Inc. found at or call for a free business consultation 470-990-0160.