Know the Law: Buying a Business; Proceed with Caution and Good Advice

Are you contemplating buying an existing business? Doing so can be greatly advantageous, because the business may be well established and have a solid track record of profits. No matter how attractive the opportunity seems to own your own business and be your own boss, it is important to proceed with caution and the proper advice.

Most importantly, you will need a qualified and trusted Certified Public Accountant to review the history of the business’ accounts. Have all records been disclosed? Is all that profit real? Has the business been subsidized by injections of cash from elsewhere? Has the business been concealing profits from the IRS? What is the state of the assets, accounts receivable, and accounts payable? Is the lease renewable? These questions and more should give you an accurate view of the health of the business, and importantly, whether the asking price is realistic.

In conjunction with your financial investigation, you’ll need to determine how to pay the purchase price. The conventional lending environment can be a challenge in today’s economy, and the SBA is getting more restrictive. Alternatively, the seller may be willing to finance the purchase. Either way, you should be able to incorporate financing into your cost of running the business."

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Know the Law: Buying a Business; Proceed with Caution and Good Advice:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.