Buying a business is not an impulse decision and all aspects of this decision must be evaluated very carefully. Buying a business should be the start of a great adventure that will stay with you forever. Unfortunately all too often it turns into a nightmare you wish you could simply wake from. Buying a business should be one of at least three options to consider.
It is very important that you select the right broker to work with so meet with a couple of them and decide who gave you the best and most provisional service. Nothing wrong with asking him for references just make sure he gives you the buyer and seller of the same business as a reference to make sure he is not a one sided broker.
Performing a detailed due diligence is of the utmost importance to insure you are getting what you pay for. Mostly you will only be allowed to perform a Due Diligence once you have put an official offer on the table and possibly even pay a non refundable deposit. If you are really brave you can attempt to do the Due Diligence yourself but I would recommend a professional for this task.
Once you have gone through all the motions and you are certain that this is the business for you make an offer that you think is fair. Don’t even think of the asking price, just make an offer and the broker will present it to the seller as an offer and come back to you with a counter.
Buying a business is not an impulse decision and all aspects must be evaluated very carefully.