What factors should I consider when taking over a business?
The substantial Baby Boomer generation is reaching retirement age in droves, making now a potentially perfect time to purchase an existing business. For entrepreneurs debating between starting their own business or buying an existing one, you may wish to take a hard look at the potential benefits of buying a company from a retiring business owner. It is estimated by the California Association of Business Brokers that over $10 trillion in assets will be sold or bequeathed by retiring business owners in the next 20 years, making now an excellent time to take over an existing business.
Factors to Consider When Buying a Business
Creating a startup and taking over a small business both come with benefits and drawbacks. For those interested in buying an existing business, you will want to consider the following:
- Know your
perspectiveindustry: Before you look for a specific business to buy, it is critical that you identify what types or types of businesses you are interested in. For those with experience in a certain field, this may be an easy question. For anyone entering a new career path, it will be critical that you do considerable research to prepare yourself for owning a business in your field of interest.
- Find the right business: You can find businesses for sale
thoroughseveral avenues. You may want to reach out to a business broker or attend a business auction. Use your contacts, which could include advisers and lawyers. Leads for a solid business for sale can come from nearly anywhere; the important thing will be the next step.
- Do your due diligence: Before you formally purchase a business, it is crucial that you thoroughly review all business records and uncover any liens, tax audits, pending litigation, and the like. Your business advisers will assist you with this important step so that you can proceed with the purchase with a full picture of the health of the business.
- Plan to make changes: When taking over an existing business, even one that is successful, it is critical that you have a concrete plan to further build the business. To see a real return on your purchase, you will need a growth plan or plan to improve the existing business.
If you are setting off on the path towards purchasing a business, contact a business law attorney for assistance. Your lawyer can help you to negotiate and purchase the business of your dreams today.