Getting help buying a business is an important part of the strategy to acquire your own company. The trick is to know whose services are valuable and whom you can do without. There are those whose ideas and experience can save the business purchaser money, time and aggravation. And they can help save a deal. Among the professionals to work with (and what to have them do) are:
1. Business brokers and agents can provide a wealth of information about businesses for sale as well as advice about how to analyze companies being offered. Look for brokers who have extensive experience and with whom you have good rapport and communication. Mostly a business sales professional is paid only upon successful conclusion of a transaction in which she’s involved. But it also is possible to hire a broker for a flat fee who will furnish advice and assistance in analyzing business opportunities, and help in negotiating a purchase.
2. Accountants with knowledge about the workings of small businesses are best used to aid in analyzing a company’s financials and determine its history of collecting revenues and earning profits. A key function for this professional is to conduct due diligence on a company under contract. The accounting professional also can assist the buyer in creating projections for a business in the future, based on its history and the anticipated influence of current business trends. In some cases, an accountant familiar with the business for sale marketplace will offer important help buying a business by providing an estimate of its value.
3. Your attorney's services can come in handy when it’s time to review a business sales contract, make sure there are no provisions of the agreement that will cause legal problems and recommend provisions for the buyer’s protection. Some business purchasers rely on their lawyers to help in negotiations. This is not always a good idea. An attorney’s orientation toward caution will do a good job of protecting the client from legal difficulties but prevent him from taking advantage of good opportunities.
4. Business finance specialists, also referred to as loan brokers, are not always considered an important part of the business buyer’s team. Yet without their help, the buyer with an accepted offer on a great opportunity may never benefit if he can’t get the money to complete the deal. The financing professional knows who is lending on the type of business involved. And she can help the buyer "package" the business opportunity and the loan request in a way most likely to generate the needed approval.
The entrepreneur who gets help buying a business from the right professionals is more likely to complete a purchase successfully.
About The Author: For over 25 years Peter Siegel, MBA has provided niche business purchase financial advisory and loan broker services with SBA Loans, Non-SBA Loans, Retirement Plan Conversions, Hard Money, Gap/Bridge Financing, Note Restructures, etc. He assists with financing for: Business Purchases, Business With Real Estate Purchases, Franchise Resale Purchases, New Franchise Purchases, Pay Off Existing Seller Notes, Partner Buyouts, Employee Buyouts. Peter Siegel can be reached direct toll free at 888-983-1632 regarding getting professionally pre-qualified, advisory & loan placement services.