| Too often, people that look to buy a small | | | | you. |
| business focus most of their energy on the past | | | | What does your family think of you buying a |
| financial results of the business. While it is | | | | business? |
| important to review financials and do a proper | | | | Do not discount the role that your family will play |
| due diligence with your professionals, there are | | | | in your purchasing a small business. Even if they |
| many intangible variables that should be assessed | | | | are not actively involves in the operations, they |
| before you commit to buying a business. This | | | | are impacted and you should get their consent |
| article will briefly consider some of the | | | | and support before you dive in. Bear in mind that |
| non-financial factors to review in a business sale | | | | when you buy a business you will likely need to |
| transaction. | | | | invest a sum of the family fortune and may even |
| Does it fit your lifestyle? | | | | need to mortgage your home as well. If the |
| When you buy a business you need to be | | | | business does suffer for any reason, this could be |
| comfortable with the fact that if you run it | | | | a cause for stress in the family unit. Have a frank |
| yourself that you must be ok with working it. For | | | | discussion with your family and ask for |
| most small businesses, this means long hours, | | | | everyone's input. |
| stress and the knowledge that you get paid last | | | | Be prepared for long term business ownership |
| after all vendors, employees and the government. | | | | When you buy a business you need to realize |
| Taking a long uninterrupted vacation without any | | | | that selling it may not be so easy so be ready to |
| worries may be a thing of the past too. | | | | stick with it for the long term. If the business |
| Can you get along with the seller? | | | | declines for any reasons you may not get the |
| When you buy a going concern from a seller, it is | | | | value that you paid for it or you might not be |
| critical that you are able to get along with them in | | | | able to sell it at all. The market to sell a business |
| a working environment. There is usually a period | | | | is far less liquid than the real estate marketplace |
| of training and transition that happens after a deal | | | | so ensure that you are ready for years of |
| closes so the interpersonal relations are important | | | | owning and operating your business. |
| to ensure a successful transition. | | | | If you are seriously looking to purchase a business |
| Do you trust the seller of the business? | | | | do an honest self-assessment to determine that it |
| During the business purchase process, before the | | | | is for you. Consult with a reputable business |
| deal is firm, you will probably do your due diligence | | | | broker that can walk you through the process |
| and be very thorough in your review of the | | | | and work with an attorney and small business |
| company and its owner. If you get a feeling that | | | | consultant that has some depth when it comes to |
| the owner is not the most ethical of business | | | | business change in control scenarios and can give |
| people based on your conversations with them or | | | | you some more feedback pertinent to your |
| feel that they do business in a manner that is | | | | specific situation. |
| dishonest, these would be major red flags for | | | | |