Are You Ready To Buy A Business?
In this economy and because of the job market a lot of people feel compelled to buy their own business and decide to take the plunge into the realm of being a business owner. This is your window of opportunity. Wonderful! Now let’s be smart about it.
Very often in their excitement, I find business owners fail to scrutinize the financial health of the business as microscopically as they should. What do I mean by that? Well... a lot of the businesses have a cash component to it, which is not always reflected on the tax return and maybe is exaggerated by the seller. The buyer should be wary of such income that is not verifiable, at least not easily, and requires more of an in-depth inquiry. I have seen clients ignore the advice of their accountants sometimes, and give in to the dream of being a business owner only to realize later on that the business is not as successful as they initially thought. Or clients may desire to grow their business exponentially. One should be realistic and guided by the right professionals. Discounting the financial health of the business before you make the purchase can be disastrous, both personally and as a business owner.
There are several legal implications, including significant personal liability when you purchase a business and the manner in which you finance the purchase. It is a substantial investment and the issues must be addressed to best protect you. It is important to consult with an attorney who can guide you skillfully. Call us if we can answer any questions for you and help you successfully acquire a viable business.