When someone wants to own their own business, some decide build a company from scratch.
But that’s not the only option. Purchasing a company already in business may be a good alternative.
Generations Law Group helps clients throughout Idaho with all their business needs, and we have decades of experience doing it. If you are interested in acquiring a business instead of starting one, here are things you should consider.
1. Think about the difference between an independent business and a franchise
Each type of business opportunity presents a unique set of circumstances.
With franchises, you are part of a systematic network built around an established name. There may be stringent requirements regarding the systems and procedures you must follow as a franchisee.
If you opt to purchase an independent business, you may enjoy the benefit of increased flexibility, but this approach will require more research and business development to acquire the same level of recognition as an established franchise.
2. Determine whether this business suits your lifestyle
Your desired lifestyle is an important consideration. Different businesses often require different lifestyles.
If you purchase a restaurant, you will have to be at the restaurant when most family gatherings occur. For some, that is a sacrifice they are willing and able to make.
Other industries and businesses call for frequent travel. As an owner, you must understand what you value and what you can handle.
3. Conduct your due diligence
You must conduct proper and thorough due diligence when purchasing an existing business. This process requires digging deep into the business records to understand the business’s history and more accurately predict its future performance.
When conducting due diligence, hire an experienced business lawyer to ensure that a full examination occurs. Your due diligence search must include an in-depth analysis of the financial statements and include information about the company’s past or ongoing litigation.
4. Talk to the personnel
As part of your investigation into the business, spend time speaking to and understanding the owner, employees, and customers.
When speaking to the owner, gain an understanding of the owner’s motivation for selling, and any challenges and successes the owner has experienced.
Be genuine when you speak with the employees. If you acquire a business, you also inherit the workforce, and their attitudes towards their work and their experience in the company will provide valuable information.
5. Hire an Idaho business lawyer if you are ready to open your business
Although you may avoid some challenges involved in starting a new business, purchasing an existing business is still plenty of hard work.
It may require upfront costs that exceed those of brand new businesses. The process can be tedious because some companies have hidden risks that remain latent until the due-diligence stage. And remember that funding the enterprise is required.
If you’re ready to get started, it’s best to get in touch with an experienced Idaho business lawyer to ensure you cross all the t’s and dot all the i’s. Our team at Generations Law Group is here to help.
Contact Generations Law Group Today
We are here to help. Whether you purchase an existing business or build one from scratch, our experienced team at Generations Law Group is here to help you evaluate your options and choose what is best for you. We also provide a wide range of legal services to help you protect your investment of time, money, and energy. Contact us today to schedule a consultation.
