There are many opportunities to buy an existing business, and it’s important to set yourself up for success before starting the process.
State of the “Businesses for Sale” Market
The “businesses for sale” market refers to the sector that deals with buying and selling established businesses. The market is influenced by a variety of factors, like:
- The state of the economy
- Industry trends
- Demographics
- Online marketplaces
- Financing and deal structure
Pros and Cons of Buying an Existing Business
Pros
- Established operations
- Brand recognition
- Established customer base
- Cash flow and financial history
- Supplier and vendor relationships
Cons
- Higher cost
- Existing challenges
- Management challenges
- Hidden liabilities
Where to Find Existing Businesses
- Online business marketplaces
- Business brokers
- Professional networks and associations
- Direct outreach
- Industry-specific publications and websites
Business Formation: Due Diligence and Legal Considerations
With any new venture you’ll need to both conduct due diligence and address legal considerations to ensure compliance, mitigate risks, and protect your interests.
During due diligence, you’ll want to think through the following aspects:
- Compliance
- Finances
- Contracts and agreements
- Intellectual property
- Assets and liabilities
Some common legal considerations include:
- Business structure
- Registration and licensing
- Contracts and agreements
- Compliance with employment law
- Tax obligations
- Data privacy and security
It’s a good idea to consult with legal professionals to ensure that all legal requirements and considerations are adequately addressed when you’re acquiring or forming a business.
Reach out if I can assist you in buying a business.
Steve Niehaus, MBA, CM&AP, CBI, M&AMI[email protected]
239.565.3171
