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What do you look for when buying a business?

Apr 22, 2016 posted by Pamela Firkin

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I am currently looking to purchase a business or franchise (still debating between an existing business or franchise model) and I am curious to know what key attributes people look for?

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Reply from Nunzio Presta

Added on Apr 22, 2016 16:33

Hi Pamela! This is a great question. First, I think you need to think really hard about what would suit your lifestyle - owning an independent business or franchise! Also, you need to understand the vital differences between an independent business & franchise (check out this blog: http://bit.ly/1VN6Bwf). Nevertheless, here are 10 things to look out for: 1) Make sure you're buying the assets, not the business. 2) Ask about sales taxes and payroll taxes. 3) Determine who will deal with the accounts receivable. 4) Find out if you can assume the seller's lease. 5) Are there prepaid expenses? 6) Negotiate a "letter of intent." 7) Watch out for bulk sales laws. 8) Get an indemnity from the seller. 9) Make sure the seller sticks around for a while. 10) Get to know the employees. Hope this helps! Good luck with your search, NP *To read the original article click here: http://entm.ag/1SzBTmS

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Reply from Nunzio Presta

Added on May 02, 2016 13:11

Thanks for sharing Eric!

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Reply from Eric Gilboord - WarrenBDC

Added on Apr 27, 2016 09:18

Finding the right business for you or your company is key. In a recent survey, Buyers of businesses were asked to identify the single biggest concern they had about purchasing a company or division. Overwhelmingly 75% said finding the right business. Getting a good deal, arranging financing or not finding out certain issues before closing the deal were all important, but securing the right company was the key. READ MORE http://conta.cc/1VQbYdZ