Getting Ready

                                                     Getting Ready

Resume and Credit Report

Chances are that you will be asking the seller to finance all or part of the selling price. A big part of the seller’s decision is going to be based on your resume and credit score. You want to have these items reviewed and ready before doing anything else. If there are any issues with your credit report, clear them up now, not later.

Lawyer

Advise your lawyer of your intent to purchase a business and make sure he or she has the necessary experience. If not, ask your lawyer to recommend one who does and make contact with that person. In the course of the actual negotiations, there may be several times when you need a quick answer: a lawyer who won’t return your calls on time will either kill your deal or force you to make uninformed decisions.

Accountant

As with the lawyer, advise your accountant of your intent to purchase a business and if he or she does not have experience, ask for a referral to an accountant who does.

Consultant

Consultants like us can provide you with advice at critical junctures in the purchasing process. We offer help both hourly and by project. Note: It is important that you realize that the ultimate responsibility for what you sign and what you buy is yours. Lawyers and accountants generally cannot advise you about whether something is a good deal or if the contract is a good contract. YOU must understand what you are buying and what you are signing. So, be prepared to review the financial until you understand what each line item means. Ask for the general ledger and financial and review them with your consultant or accountant. Read the contract, and if there is anything you don’t understand, underline it and have your lawyer explain it. Ask your consultant to do a risk analysis of the purchase. You can also retain a consultant to help you. 

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