Getting the initial offer to buy a business right is vital to ensure a smooth purchase transaction. Your best option is to have a business lawyer draft your letter of intent (LOI) to ensure it accomplishes the five goals of an LOI. Those goals are dependent on having certain provisions and sections in the letter. […]
5 Critical Sections for Your Letter of Intent Read More »
Many first-time business buyers are shocked at how little information they receive about a business in the early stages of the buying process. And yes, it’s true that the financial information isn’t going to be all-inclusive. But financial information isn’t all there is to know about a business. You can and should use all (legal) […]
How the In-person Visit Fits into the Business Buying Process Read More »
I can’t tell you how many times I’ve heard first-time business buyers tell me that they were shocked that they didn’t get to look at more financial and business information before they were expected to make an offer. On the one hand, I certainly take their point. It’s true that the financial information you get is […]
5 Questions to Ask During the In-Person Visit (+3 bonus questions!) Read More »
You know that the old saying: “You can’t buy something until you’ve found it.” This adage holds true for a business as well. Even if this sounds pretty straight forward, the simplicity is deceptive. Businesses don’t hang “for sale” signs in their windows. And even if they did, finding a business that’s for sale isn’t really […]
The Secret to Finding the Right Business to Buy Read More »
Buying a business is a time-consuming process with many steps that require different skills. To complete the process properly and efficiently you will need a team of professional advisors. I often compare it to the movie Ocean’s 11, one of my favorite heist movies. If Billy Ocean had tried to rob that casino by himself, he […]
Let a Business Attorney Handle Your Business Purchase Read More »
As you go through the various steps in the process of buying a business, there will be key points that can make or break your deal. One such milestone is your official offer to buy the business, which you will make either through a purchase contract or (more likely) through a letter of intent (LOI). […]
The 5 Goals for Your Letter of Intent Read More »
Buying a business is a process with a number of steps. It isn’t a one-and-done transaction like a Starbucks run. It takes time, patience, and focus. Educating yourself on the process of buying a business is vital to a successful purchase. In this video, attorney Ed Alexander walks you through the seven steps involved in […]
The 7 Steps to Buying a Business Read More »
The Tax Cuts and Jobs Act (TCJA), signed into law nearly a year ago on December 22, 2017, transformed the corporate tax code. In particular, it significantly changed the way that small businesses depreciate assets by expanding both Section 179 deductions and first-year bonus depreciation. With these two methods, businesses can elect to write off […]
Two Huge Tax Breaks for Business Buyers Read More »
Owning and operating a business, being your own boss, is an inextricable part of the American Dream. It’s no coincidence that a particularly common mantra for politicians—both Democrat and Republican—is “small business is the backbone of the American economy.” And it’s true. According to data from the Small Business Association, in 2016, small businesses accounted […]
Buying a Business Is Less Risky Than a Startup Read More »
There are many ways to estimate the value of a closely held business, and they all seem complicated. But, in reality, the process isn’t much different than pricing a used car. Figuring out a price for a car is fairly simple. First, keeping in mind the price that was originally paid for the car and […]
3 Ways to Assess the Value of Your Business Read More »