Specialists To Have On Your Side When Purchasing a Business

December 4, 2021 Nick Nahid

It's a huge decision to buy a business. A skilled professional will help you evaluate the business and guide you through the transaction. This requires expertise in many areas, including legal and real estate, business valuations, acquisition, and even real estate.

These are the three most important people to hire to assist you in this process:

1. An excellent attorney. Here are the reasons you need one.

Ensuring that the transaction is legal and done correctly when buying a business is important. Your attorney should review nearly all documents, from contacting the owner to signing a nondisclosure agreement to decide the structure of your purchase.
Also, you will need to decide who will buy the business: your company or yourself? Or will you buy the shares or assets?
An experienced attorney will be able to tell you what is best. Your attorney can also help you negotiate the purchase terms, the purchase agreement, and any other details related to transferring ownership.

How can you choose an attorney to buy a business?

Your attorney can significantly impact the outcome when it comes to business acquisitions.
They should have experience with acquisitions of small- to medium-sized businesses and the various types of business structures and how to protect themselves against tax liabilities.
They should be able to guide you through due diligence and the transfer of permits and licenses. They should be able to tell you what documents to file with the courts and how to handle employees.
Depending on the transaction, it may be necessary to hire labor, tax, or real-estate attorneys.
Interview any potential attorneys before you hire them. Ask for references. Also, make sure that they aren't facing any malpractice lawsuits.

2. a sharp accountant. Here are the reasons you need one.

Financial performance is one of the most important aspects to consider when buying a business. Many small businesses aren't the best bookkeepers.
Their accounting methods are focused on minimizing taxes. Their financials might not make much profit or even any profit.
A qualified accountant will examine the financial statements of an owner and ask specific questions about how they earn their money.
An experienced accountant can help you calculate the seller's discretionary earnings and the potential earnings of the business, giving you an idea of its true value.

How can you select an accountant to help you buy a business?

An accountant who is a Certified Public Accountant (CPA), through the American Institute of Certified Public Accountants, and has to experience in their industry should be considered a good one.
They should have experience in small business acquisitions, financial due diligence, and business valuation. They must be able to understand that not all businesses can be valued the same way. There are many valuation rules.
Many accountants have also been credentialed as business appraisers and professional business appraisers.
Ask your trusted friend or attorney for a recommendation. You may be able to refer them to an accountant who has experience in business acquisitions.

3. A professional business broker. Here are the reasons you need one.

A professional business broker can assist you in finding a business to sell.
Brokers usually have a specific industry focus. They can help you determine what to look for in an owner and what questions to ask.
They often do professional valuations, which can give you an idea of the value of your business.
They can help you to put together an offer, negotiate and close the deal.

How can you find the best business broker?

To find a local broker, search the Broker Directory on BizBuySell. A broker's profile should include information about the type of businesses they have sold and their expertise.
Your profile will indicate whether they are members of a professional association such as IBBA or a state association such as CABB.
California is one of the states where business brokers must hold a license to sell real estate. This is especially important for businesses that include property or are transferring leases.

An experienced team can make a huge difference in purchasing a business. They will guide you and provide professional guidance to help ensure that you get the best outcome. In addition, they bring an important level of objectivity and professionalism to complex transactions.

These are the three most important people to hire to assist you in this process:

1. An excellent attorney. Here are the reasons you need one.

Ensuring that the transaction is legal and done correctly when buying a business is important. Your attorney should review nearly all documents, from contacting the owner to signing a nondisclosure agreement to decide the structure of your purchase.

Also, you will need to decide who will buy the business: your company or yourself? Or will you buy the shares or assets?

An experienced attorney will be able to tell you what is best. Your attorney can also help you negotiate the purchase terms, the purchase agreement, and any other details related to transferring ownership.

How can you choose an attorney to buy a business?

Your attorney can significantly impact the outcome when it comes to business acquisitions.

They should have experience with acquisitions of small- to medium-sized businesses and the various types of business structures and how to protect themselves against tax liabilities.

They should be able to guide you through due diligence and the transfer of permits and licenses. They should be able to tell you what documents to file with the courts and how to handle employees.

Depending on the transaction, it may be necessary to hire labor, tax, or real-estate attorneys.

Interview any potential attorneys before you hire them. Ask for references. Also, make sure that they aren't facing any malpractice lawsuits.

2. a sharp accountant. Here are the reasons you need one.

Financial performance is one of the most important aspects to consider when buying a business. Many small businesses aren't the best bookkeepers.

Their accounting methods are focused on minimizing taxes. Their financials might not make much profit or even any profit.

A qualified accountant will examine the financial statements of an owner and ask specific questions about how they earn their money.

An experienced accountant can help you calculate the seller's discretionary earnings and the potential earnings of the business, giving you an idea of its true value.

How can you select an accountant to help you buy a business?

An accountant who is a Certified Public Accountant (CPA), through the American Institute of Certified Public Accountants, and has to experience in their industry should be considered a good one.

They should have experience in small business acquisitions, financial due diligence, and business valuation. They must be able to understand that not all businesses can be valued the same way. There are many valuation rules.

Many accountants have also been credentialed as business appraisers and professional business appraisers.

Ask your trusted friend or attorney for a recommendation. You may be able to refer them to an accountant who has experience in business acquisitions.

3. A professional business broker. Here are the reasons you need one.

A professional business broker can assist you in finding a business to sell.

Brokers usually have a specific industry focus. They can help you determine what to look for in an owner and what questions to ask.

They often do professional valuations, which can give you an idea of the value of your business.

They can help you to put together an offer, negotiate and close the deal.

How can you find the best business broker?

To find a local broker, search the Broker Directory on BizBuySell. A broker's profile should include information about the type of businesses they have sold and their expertise.

Your profile will indicate whether they are members of a professional association such as IBBA or a state association such as CABB.

California is one of the states where business brokers must hold a license to sell real estate. This is especially important for businesses that include property or are transferring leases.