The Top 10 Steps To Take When Buying A Business
Purchasing an established business can help ease the challenges of building a business from the ground up. Nevertheless, before buying a business, it’s important to do your due diligence when researching the right business acquisition for you. Seeking out a business lawyer is one of the best places to start. An experienced business lawyer with an established reputation in handling sales and purchases of businesses, like ZM Law Group will guide you through this process and ensure this transaction is properly done and legally sound.
The Top Ten Steps to Take When Buying a Business:
Proper preparation: Clearly define and understand your business goals and objectives before purchasing the business.
Market research: With a clear understanding of your goals, you should conduct thorough market research and analysis to identify the businesses that align with your goals. As part of this process, understand your competition and identify the market location best suited for your Business entity.
Understand financing: Once you have identified your business and market, it is crucial to ensure and prepare for the financial investment and commitment necessary for the acquisition and maintenance involved. This is accomplished through the thorough analysis of the Business’ financial records such as tax returns, profit, and loss statements, expected and realized revenue as well as business expenses. It is crucial to engage an experienced business lawyer and a financial and tax professional to assist with this process. ZM Law Group works with a team of professionals throughout this process to move you forward.
Conduct a business value assessment: With a clear understanding of the financial elements of the business, you can compare the assets, liabilities, and earning potential of the company to determine not only the current value of the business but the growth potential in the future.
Understand the legal and regulatory requirements: It is imperative that a Business attorney guide you through this process. Understanding the legal and regulatory requirements and issues that are involved with the specific business market will mitigate risk and establish parameters to safeguard from future liabilities.
Negotiate the business price: Once you have established the value of the business and the proper regulatory requirements, utilize the negotiation skills that an experienced business lawyer brings to the transaction to get you the best price.
Draft a proposed Business Purchase Agreement: A properly and legally sound proposed Business Purchase Agreement sets forth all legal issues and establishes the terms for the purchase. This is an essential step to ensure that all issues are properly identified and addressed before the transaction is finalized.
Acquire financing: Depending on the size of the company and the resources you have at your disposal, consult and secure your financing options such as bank loans, investors, etc.
Secure the Business purchase with properly drafted and executed closing documents: Your Business attorney will draft documents and prepare all legal documents involved with the legal acquisition of the Business. A Business Lawyer Baltimore County will also ensure that the proper documents are filed with the State to effectuate your legal ownership of the Business.
Developing a plan of action: A properly developed business plan, which sets forth the current and future steps necessary, will establish a solid foundation for a thriving business.
Get in Touch With a Business Lawyer
Looking for a “Business Lawyer Near Me”? Having an experienced Business Lawyer from ZM Law Group on your side will ensure the best path to a successful transaction.
Get in touch with a seasoned business lawyer from ZM Law Group to work with you every step of the way.