Category Archives: buying a business

Should I find a job or I buy a job? Eight important questions.

Many people get fed up with working for someone else and consider starting a small business or buying a small business. If you are considering being your own boss please give consideration to the following questions. Can you ask yourself these questions and answer them honestly? I’m serious, can you answer them honestly?1. Are you […]

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Due Diligence when Buying a Small Business – Part 4

In a previous post, Due Diligence Part 3, we talked about how to deal with tax returns, in Due Diligence Part 2 we talked about Sales Tax issues. Here in Part 4 we’ll talk about a background check you might considered getting when you are in the due diligence process of buying your small business. […]

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SBA Loans have new underwriting policy

A few days ago the SBA came out with a new lending policy to be used when buying a business. Business brokers are very excited about this change since it will facilitate more financing for small business purchases. About 15 months ago the SBA made a draconian change in their underwriting that eliminated business acquisition […]

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When buying a small business – Allocation of Purchase price is important!

Allocation of Purchase Price is done for tax purposes when buying the assets of a small business. The allocation is important because it effects how the person buying a business and the person selling a business will be taxed and what deductions are possible. Always do the allocation of purchase price before closing the transaction, […]

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Due Diligence for Buying a Business – Part 3

Assuming you’ve read Part 1 and Part 2 here we go with Part 3. Sales Tax and Due Diligence in a small business purchase: Make sure the seller provides you with the Sales Tax Reports for at least 3 years. Double check those with the reports filed with the state. It is pretty unusual for […]

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Financing the Small Business in Today’s Environment

Guest post from Mr. Tim Stamps DRDA, PC Most of us have encountered a budding entrepreneur who has spent the majority of his/her career in the corporate world and then finally musters the courage to step out on a limb and start their own small business. They face a few problems, though: despite his long-standing […]

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Buying A Business: The Business Plan as a Guidebook

I am always amazed at what little effort goes into a business plan when business buyers are looking at a business. The buyer will spend more time trying to figure out how to make the office bigger than they will trying to build a business plan the will improve the business. When considering the purchase […]

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Confidentiality in the Business Sales Process.. why it’s important to buyers, sellers and business brokers…

One of the most misunderstood aspects of selling or buying a business is the confidentiality issue.Why do owners who are selling a business want to maintain confidentiality? Why is everyone so paranoid? Here’s a short list: If employees find out the business is for sale they often assume the worst even though it’s not true […]

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Due Diligence for Buying a Business – Part 2

When working through a business broker to buy a business the due diligence process should be more efficient than when working on an acquisition without a business broker involved.In Part 1 we talked about doing due diligence for the Sales Tax issues. Now in Part 2 we’ll talk about the business income tax return issues. […]

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A Business Buyer’s Guide to Working with a Business Broker

When looking to buy a business often the business seller has retained a business broker to represent the seller, locate a buyer, assist with negotiations, guide the due diligence efforts and coordinate the closing process. If you are seriously trying to find a business to buy you will come in contact with a business broker […]

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