Buying an Existing Business Essay
Part 1: Learning Objectives
1. Understand the advantages and disadvantages of buying an existing business.
2. Define the steps involved in the right way to buy a business.
3. Explain the process of evaluating an existing business.
4. Describe the various techniques for determining the value of a business.
5. Understand the seller's side of the buyout decision and how to structure the deal.
6. Understand how the negotiation process works and identify the factors that affect the negotiation process.
Part 2: Class Instruction
Some entrepreneurs choose to buy existing businesses rather than start their own. In a typical year, between 500,000 …show more content…
Steps in Acquiring a Business LO 2
More than half of business acquisitions fail to meet the buyers’ expectations. The correct way to evaluate a match is to:
• Analyze your skills, abilities.
• Develop a list of criteria
• Prepare a list of potential candidates.
• Investigate and evaluate candidate businesses and evaluate the best one.
• Explore financing options—the seller is a potential source.
• Negotiate a reasonable deal with the owner
• Ensure a