How do I buy a business?
I'm planning to buy a business, possibly a restaurant. I never owned a business. What are the process of buying a business. Let's say I have enough cash and I found one business for sale, what is next?
Go and see the business?should I hire a broker? how do I offer a price, through the seller's broker? should I hire a accountant before making an offer? at what point I need an attorney and business evaluation?
When do I have to get all the permits?
Help me please....thanks a lot in advance.
- 10 years agoFavorite Answer
Find a business broker to work in coordination with your Attorney, CPA, Banker, etc.. They have access to local businesses for sale, they will guide you through the process, they typically will not charge an upfront fee, and they will involve your other advisors as needed.
Attorneys and CPAs are experienced in certain aspects of a business sale, e.g., lien searches, contract preparation, valuations, review of the books, etc., but they are by no means experts in the entire process. Attorneys and CPAs are focused on lawsuits, legal documents, bookkeeping and taxes for their existing clients. They do not handle business sales on a regular basis. A business broker is focused 100% on efficiently and effectively executing business transactions and can keep your professional advisors focused. I have seen advisors (attorneys especially) charge for significant chunks of unneccesary paperwork, then kill a transaction for no better reason than to protect their own ego. Then, they bill you for the transaction they killed. A business broker is paid only if the transaction is completed. Who are you going to trust to get the deal done?Source(s): Experienced Business Broker
- Bob SmithLv 510 years ago
There are a lot of things to consider. A good place to start is to hire an accountant AND a lawyer because when making such an investment, you want to make sure it's done correctly. An accountant will be useful because you don't want to pay too much for the assets.
Make sure you have all permits before making an offer.
Good luck and congratulations.
- 10 years ago
Find a lawyer than specializes in the buying and selling of businesses and they can help you with the entire process. They have gone through it hundreds of times and have contacts for evaluations, forensic accounting etc ...
It will be worth the investment.