Some of the best business opportunities may be those that aren’t even on the table…yet. If you’re in the market to acquire a business, you may find your options are quite limited if you restrict yourself only to those that are “for sale.”
But before you approach a competitor, you want to do some research and exploring first. While the adage, “it never hurts to ask,” can be a good one when pursuing a potential acquisition, before doing so, you need to have some insight and background on your options. One place to start is to consider these important factors before pursuing a business purchase. You should also take these important steps.
Consult a Business Attorney
Even at the very early stages of a potential acquisition, you want to be working in lock-step with your attorney. It would be a shame to risk having the entire deal fall through all because you were too eager. A commercial lawyer who is experienced in business acquisition transactions can guide you through the entire process and help you structure the deal favorably.
Do Your Homework
If you’re serious about acquiring a competitor, you need them to also take you seriously. You do this by being prepared. Learn as much as you can about the business, its operation and earnings. The more you know before approaching a business owner about a potential sale opportunity, the more seriously they’ll take you and the more willing they will be to listen to your offer.
Create a Business Plan
The business owner is going to want to know details about the acquisition, including your ability to fund the transaction as well as what your plans are for the business’ future. Document your plans and submit them to the owner when you approach them about the offer.
As you consider making a business purchase, do so with your eyes wide open and a skilled attorney at your side. We can help. To learn more about our commercial law services at Silverberg|Brito, PLLC, get in touch to schedule a free consultation.