BBB of the Atlantic Provinces: 11 key considerations in avoiding pitfalls when purchasing a business

BBB Accredited Business, Sunbelt Business Brokers Nova Scotia have 11 key considerations in avoiding pitfalls when purchasing a business. 

 

1. Track record and expertise: Find a business broker with a good track record and many years of experience so they can share their knowledge and expertise.

 

2. Standards of practice: Deal with those who subscribe to the industry’s highest ethical standards.

 

3. Right fit for the buyer: Find the right fit for you, the buyer, based on your interests, experience, expertise, and financial capabilities.

 

4. Confidentiality: Choose businesses that demand confidentiality, so staff will be intact when you buy. This way, you can expand and work on the business rather than work in the business.

 

5. Prequalification: Ensure you have the funds and proper financing to complete the transaction.

 

6. Financial and professional resources: Get professional financial, accounting, and legal advice throughout the entire process. This will help you to understand certain intricacies, such as business value, financing payments, and tax implications. This will assist you in your cash flow analysis and projections.

 

7. Opportunity analysis: Assess the latent potential of the business included in the upside and risks associated with the purchase itself.

 

8. Negotiating expertise: The terms of a deal are usually more critical than the price. Use win-win strategies and a successful business brokerage that can share various creative solutions.

 

9. Due diligence: Ensure a well-thought-out and lengthy due diligence process protect you.

 

10. Transitioning and training: Have a plan so the transition goes smoothly and the previous owner and staff can assist you in a seamless takeover.

 

11. Complimentary service: Select a business brokerage (such as Sunbelt Business Brokers Nova Scotia) where the buyer sees, as outlined within, free of charge.

 

Advantages of using a business broker

For sellers:

• A broker will assist in establishing the proper value for your business.
• They will identify the right prospective buyers to facilitate a successful sale.
• Facilitate negotiations and closing arrangements due to their years of experience as a broker.
• Brokers streamline the entire process so the seller can concentrate on running their business.

For buyers:

• Brokers serve as a single source for hundreds of businesses for sale.
• They will target opportunities that match the buyers’ previous business experience, skills, desires, and expectations and meet their financial means.
• Brokers add value to the process by providing financing options and accounting/legal expertise or resources to close the transaction successfully.

For more information, please contact:

Brad Schnurr; Broker/Owner
902-830-2575
www.sunbeltnetwork.com/halifax-ns