Ten Commandments for Buyers



1. Thou Shalt Not 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.

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2. Thou Shalt Have a Good Reason for Buying!​

Buying a business is hard work.  It takes commitment.  Spend time deciding why you want the responsibility of owning a business.​

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3. Thou Shalt Provide Background Information!​

Be prepared with a Resume and Personal Financial Statement.  Remember, the seller most  likely will be your banker and will want to know if you can run the business successfully.​

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4. Thou Shalt Keep an Open Mind!​

There are no perfect businesses.​

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5. Thou Shalt Keep in Mind Tax Benefits!​

Remember tax benefits are realized from intangible as well as tangible benefits.​

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6. Thou Shalt Offer a Reasonable Down Payment!​

A low down payment indicates lack of commitment.  When sellers question commitment, serious negotiations are in jeopardy.​

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7. Thou Shalt Realize Businesses are Priced on Profits!​

A business making huge profits with few assets could save you money later in capital outlay for expansion.​

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8. Thou Shalt Remember Time is of the Essence!​

After all parties have agreed upon price and terms it is important to proceed quickly to closing.​

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9. Thou Shalt be Prepared to Meet the Landlord!​

Landlords usually have little to gain by cooperation.  Therefore, come to meetings armed with a resume and a financial statement.​

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10. Thou Shalt Avoid Surprises!​

Disclose pertinent information early and avoid surprises that might destroy your credibility.​