Explore the Best Practices for Buying a Business

Explore the Best Practices for Buying a Business

  • Posted: Aug 30, 2016
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No matter what type of business is being considered, there are specific considerations every potential entrepreneur should explore prior to making any binding decisions.
By exercising caution, business buyers are far more likely to enter into a purchase contract that actually provides solid returns. While there are times when it’s possible to buy an existing business directly from an owner, there are pitfalls that could jeopardize the investment. Houston-area experts like Del Lingco International work closely with business buyers to ensure they’re fully informed before signing any contracts.

Timing Can Be Important

Because some businesses tend to be seasonal, paying attention to those cycles is important. It’s far better to select a business for sale prior to the busy season than immediately after business drops off for the year. In other cases, businesses newly on the market are less likely, as a rule, to negotiate pricing and terms than a business that’s been offered for sale for an extended period of time. Timing is a factor to discuss with your Del Lingco International representative prior to any business acquisition.

Financial Information Is Crucial

Sellers should always provide full, transparent records for potential buyers to review. Audits, tax records, and other pertinent information should fall within acceptable levels to minimize the exposure of a new owner. Even when it appears the financial reports are acceptable, it pays to have a qualified accountant review the information to discover any discrepancies that need to be explained.

Employees and Employment Contracts Should Be Reviewed

It’s always a good idea to carefully review the status of all employees when buying a business. If they have employment contracts, how will those contracts impact the viability of the purchase? Here again, legal issues should be reviewed by an attorney familiar with Texas employment laws to ensure there are no misunderstandings that could result in issues developing after the business is purchased.

Seek Professional Help

Of course, there are numerous other issues to go over before determining if a specific business is, indeed, a good fit. The professional staff of Del Lingco International is experienced and capable of guiding business buyers through buying a business. Their knowledge of the area market is beneficial to anyone looking for business opportunities in the greater Houston area. If you’ve got questions about purchasing a Houston area business, contact the experts today for help.