I. Thou Shall Not Be Greedy!
Sellers deserve a fair price for the years they have spent developing the business. Be prepared to pay for the goodwill of the business.
II. Thou Shall Have A Good Reason For Buying!
Buying a business is hard work! It takes commitment! Spend time deciding why you want the responsibility of owning a business.
III. Thou Shall Provide Background Information!
Be prepared with a resume and financial statement. Remember, the seller will most likely be your banker and will want to know that you can run the business successfully.
IV. Thou Shall Keep An Open Mind!
There are no perfect businesses.
V. Thou Shall Keep In Mind Tax Benefits!
Remember tax benefits are realized from intangible as well as tangible assets.
VI. Thou Shall Offer A Reasonable Down Payment!
A low down payment indicates a lack of commitment. When sellers question commitment, serious negotiations are in jeopardy.
VII. Thou Shall Realize Businesses Are Priced on Profits!
A business making huge profits with few assets could save you money later in capital outlay for expansion.
VIII. Thou Shall Remember Time Is Of The Essence!
After all parties have agreed upon price and terms it is important to quickly proceed toward closing.
IX. Thou Shall Be Prepared To Meet The Landlord!
Landlords usually have little to gain by cooperation. Therefore, come to meetings armed with resume and financial statement.
X. Thou Shall Avoid Surprises!
Disclose pertinent information early and avoid surprises that might destroy your credibility.
Quorum Business Advisors