Buying a Business
Many entrepreneurs expand existing enterprises by acquiring businesses in the same or complementary businesses. Many "would-be" business owners look to an acquisition of an existing business as a "quick start" with an existing clientele, location, and established cashflow. While there are advantages to buying a going concern, there are also pitfalls which require a great deal of investigation, analysis, and due dilligence to ensure a safe and profitable transaction.
A prospective purchaser should always remember that the sales agent/broker is representing the seller and therefore he is on his own to determine the adequacy of the data he is supplied, negotiate a fair contract that protects him legally and financially, and receives what he perceives he is paying for.
Compass Business Group, Inc. assists business purchasers through:
- Performing a Business Valuation on a prospective business or reviewing an existing valuation for reasonableness, accuracy, validity of assumptions used, and verification of claims made.
- Analyzing the inclusion or omission of certain contract items including details of non-competition clauses, methods of inventory and asset verification, required employment contracts, and terms of any escrows or price adjustment contingencies which should be included.
- Preparing a Business Plan for the acquisition, financing, transition, and growth or absorption of the business being purchased.
- Assisting in the due diligence requirements for transfer of inventories and other assets.
- Assisting in the recruitment and/or training of personnel to ensure a smooth transition to the new entity.
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