Buying an accessible offshore business, or any operational business, anywhere, is often safer than starting one from scratch. As, the existing business has equipment and inventory, the offshore business is already situated at a particular location, in a favourable jurisdiction, plus the business has employees, you already have an active database of customers, and most importantly the business has a track record which you can leverage, as well as consider for records and tax returns.
In my own experience, when I wanted to buy a business in Florida, it involved a hell of a lot of risk. What if I am getting a business at a great deal, does that mean that there’s something heading down the road at 90 miles an hour. I was confused from where to start and where to end, at last a broker
Guides to buying a Florida business So when doing your due diligence on a business, you want to buy, please consider these factors:
- Indentify Types/Sizes/Location of Business
Before you start searching or calling business brokers, owners or sellers and agents make sure you have a full idea about what kind of business you are looking for. Identify what types, sizes and locations of business you require. This will make realize the broker and agents about your seriousness and will spend most of the time with you giving you.
- Decide your Budget
When buying a business, you need to know how much money you are willing to spend on a down payment for a business. Also know in advance if you would be willing to pledge the collateral in any real estate you own for a note the seller may be taking back in the deal – this will save you a lot of time in the search process and in negotiations.
- Acquire Pre Qualified/Reviewed For Financing
Avail Pre-Qualified/reviewed for financing by lenders, which is one the most important part as many businesses need all cash for their businesses. With the help of financing you just have to put down 20%-30% and then you can avail finance for the rest of the purchase.
- Proof Read Confidentiality Agreements
Do you know, to view or get any detailed information on any businesses for sale you will probably need to sign a confidentiality agreement? Considering this part keep the sale of all businesses confidential. There are also legal ramifications if it is traced back to you that you were the one who leaked the word that the business was for sale!
- Have Your Professionals Lined Up Before You Sign A Contract
You will be utilizing many professionals to buy a business. Make sure you have a CPA or Due Diligence Consultant to help you look at the financials and paperwork of the business to make sure it is in order. You will also possible need financing (a loan for the purchase), escrow services, an attorney to review contracts and possible other services to assist you in the buying of your business.
- Make An Offer If You Like A Business!– Get The Process Started!
Most of them are timid enough when buying a business and are not willing to “pull the trigger” and sign a purchase agreement to start the process of buying a business. And most serious buyers as they are too analytical about writing up an offer. Writing up an offer also usually “locks out” other potential buyers (your competition) for a period of time, so you can take a look at important business records and info.