It’s Business, And It’s Personal

The steps in buying a business

On Behalf of | Apr 19, 2017 | Buying & Selling Businesses |

Some North Carolina entrepreneurs might decide that they would rather purchase a business than start one on their own. Their first step should be to consider what kind of business they would like to have. They should take into account location, lifestyle, size and industry. Once they have a clearer picture in mind, they can begin researching the type of business they are interested in. They may want to begin with immediate contacts, such as friends and people they have worked with, and expand their networking from that point. The internet should be used with caution since while there are some legitimate sites, there are also a number of scams.

A person who is struggling to find the right business might consider working with a business broker. Like real estate agents, these brokers take a small commission when a person buys a business. However, people should not let a broker or anyone else push them into buying a business without doing due diligence. This may include hiring an independent business valuation firm and an acquisitions attorney.

It may also be necessary to get funding through a business loan, angel investors or venture capitalists, or seller financing. Finally, the sales agreement must be drafted.

Throughout this process, an entrepreneur may find the assistance of an attorney helpful. Whether the entrepreneur is experienced or not, there may be legal areas about which the attorney is better equipped to advise. An attorney may also be able to assist in assessing whether there are any red flags with the business, such as liens, and helping to ensure that all applicable documents are prepared correctly. Once the purchasing process is complete, an attorney may continue to be helpful with other legal aspects of running the business or even selling it at a later date.