Tips for Buyers

• Don't be greedy.
• Sellers deserve a fair price for the years they have spent developing their business. Be prepared to pay for the goodwill of the business.
• Have a good reason to be buying.
• Buying a business is hard work! It takes a commitment! Spend time deciding why you want the responsibility of owning a business.
• Be prepared.
• Be prepared with a resume and financial statement. Remember, the seller will most likely be your banker and will want to know that you can run the business successfully.
• Keep an open mind.
• There are no perfect businesses.
• Don't forget the tax benefits.
• Remember tax benefits are realized from intangible as well as tangible assets.
• Offer a reasonable down payment.
• A low down payment indicates a lack of commitment. When sellers question commitment, serious negotiations are in jeopardy.
• Businesses are priced on cash flow.
• A business making huge profits with few assets could save you money later in capital outlay for expansion.
• Time is of the essence.
• After all parties have agreed upon price and terms, it is important to quickly proceed toward closing.
• Meet the landlord.
• Landlords usually have little to gain by cooperation. Therefore, come to meetings armed with resume and financial statement.
• Full disclosure.
• Disclose pertinent information early and avoid surprises that might destroy your credibility.