Buying a Business
- There are five important steps that are essential to completing a successful acquisition:
- Preliminary agreement with seller as to the template or methodology that will be used for business valuation.
- Preparation of a comprehensive letter of intent or memorandum of understanding outlining all aspects of deal structure.
- Successful completion of due diligence.
- Preparation and execution of all legal documents that are required to close the transaction.
- Respectful and timely communication activity with the seller throughout the transaction period.
- The five most common mistakes that are made when buying a business:
- Advancing the buying process without a clear and complete understanding with the seller as to the business valuation template.
- Preparing a letter of intent with seller that does not clearly identify and resolve all the business issues that will be necessary for successful deal completion.
- Not obtaining sufficient and analyzing enough detailed information provided by the seller during the due diligence period.
- Allowing legal professionals to commence preparation of the necessary legal documentation prior to final agreement with seller as to the final valuation template and/or clear resolution of all business issues associated with the transaction.
- Buyer is perceived by the seller as not being “fair”.
- If you have identified a potential acquisition or are currently in discussions with a seller, email Norman Seawright, CA at norm@newcap.net for a no cost introductory strategy meeting. We are not business brokers! We are expert consultants who work closely with our clients to ensure a successful process for their business acquisition.