Advantages to Buying a Healthy Business:
- Immediate cash flow with substantial income for years to come
- Retention of a trained staff to support the new owner
- Established suppliers
- Established customer base with years of buying history
- Licenses, patents, permits, etc. in-place
- Training from sellers to help ensure your success with your new venture
Steps to Buying a Business:
- Evaluate what type of business you want – Services, manufacturing, retail, distribution, etc.
- Meet seller to understand the culture, operations, etc.
- Create a cash flow calculation to ensure that the business can provide payback to you
- Conduct a preliminary evaluation of the business to make a fair offer
- Conduct due diligence to confirm the validity of the offer
- If external funding is necessary, begin working with lenders
- Prepare documents for closing with a business broker and attorney