It’s Business, And It’s Personal

Purchasing existing businesses

| May 31, 2018 | Buying & Selling Businesses |

Investors in North Carolina who are interested in purchasing an existing business may want to consider acquiring viable businesses from owners who are ready to retire. These types of deals provide the best opportunities because the owners are less inclined to change their minds and may be more open to financing a portion of the purchasing amount to obtain a monthly income. However, it is still important to keep in mind certain factors when purchasing a business.

Before purchasing an existing business, interested parties should make sure to do their due diligence regarding which aspects of the business may pose a problem. If there are issues to be addressed, prospective buyers should consider giving the seller an opportunity to explain the reasons the issues exist. If possible, the buyer may be able to use the negative aspects of the business as a negotiation tool for better purchasing terms.

It is not unusual for business acquisition deals to fall apart at a closing. However, prospective buyers can plan for the possibility that the seller may balk and take the necessary negotiation, contractual and communication actions to protect their interests.

Another important factor for buyers to remember is that it may be necessary to end negotiations in some situations. When a contract has been signed, the terms within that contract become legally binding. Purchasers should avoid signing the contract until they have no other terms that they want to negotiate.

An attorney who practices business law may work to protect the interests and rights of clients who are buying and selling businesses. The attorney may assist with negotiating the terms of a contract and with obtaining appraisals of business assets. Legal guidance might be provided regarding the creation of the appropriate legal under which a business should be purchased and other types of business transactions.

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