It’s Business, And It’s Personal

How to buy a small business

On Behalf of | Dec 9, 2019 | Buying & Selling Businesses |

Aspiring entrepreneurs in North Carolina and elsewhere may not have the money or creativity to start their own companies. However, it may be possible to buy an existing company that already has an established brand and track record of profitability. In some cases, it may be possible to acquire an existing company without paying for it upfront. Generally speaking, those who are looking to buy a business will want to look for organizations that generate between $1 million and $10 million in annual revenue.

A buyer may be able to gain leverage to negotiate a favorable deal by working with an eager seller. For example, someone who is older and getting closer to retirement may be willing to part with the company for less than full market value. Those who are looking to buy existing companies are encouraged to create a relationship with the owner.

Making an emotional connection with the owner may further motivate that person to sell. This is because he or she will feel good that his or her legacy will live on with a competent new owner. If an offer is accepted, it is important to do due diligence before it closes. As part of the due diligence process, a buyer may want to talk to current employees and others who are associated with the business.

Those who are looking to purchase a business may want to work with an attorney during the purchase process. An attorney may be able to work with accountants and other advisers to ensure that a deal is worth pursuing. Legal counsel may be able to assist during the due diligence process or help craft the terms of any offer made to a seller. If necessary, attorneys may help obtain regulatory approval for a business acquisition.