Buying an exsiting business

[jjpullin]

What does everyone think about buying an existing business?
What are the procedures in buying a business from someone else?
What should look for?

The business I am looking to buy is a WISP in a rural area. I have wanted to start a business like this for sometime. First, I was thinking of starting it from scratch. However, see an opportunity to buy this one with subs.

What is your opinion?

[jasaunders]

Several major steps:
1. Find businesses that you like
2. Determine what's included for the asking price
3. Meet with the seller's to find out the state of the business
4. Sellers will qualify you as a buyer to make sure you aren't wasting their time
5. Sign a letter of intent
6. Due Diligence stage, most important!
7. Terms and contract created and finalized
8. Closing on the business, a lot can happen before the final moment.

[zharlene]

What does everyone think about buying an existing business?
What are the procedures in buying a business from someone else?
What should look for?

The business I am looking to buy is a WISP in a rural area. I have wanted to start a business like this for sometime. First, I was thinking of starting it from scratch. However, see an opportunity to buy this one with subs.

What is your opinion?

Buying an existing business is a good idea if you've got enough money & ideas to develop it further.

[ZingerIntl]

What kind of business are you buying. I have been in the process for 4 months. Its a multi million dollar deal but the cash flow is worth the debt. I am only waiting for the guarantor to contact the lender then they send the money.

Its not easy but think of this. The avg business yearly growth is like 10 - 15 %. Say you have a construction business and you do roofing making 100,000 profit a year. and you buy a company that delivers shingles and roll on tar paper and nails, and everything you need. The delivery biz makes 80,000 a year and you get their name trucks and AR for say $350,000 (3x yearly profit + equoipment + AR) which costs $4200 a month. which leaves you with $40,000 extra or 40% what you made last year but now the construction biz gets everything "at cost" so you save another 10-25% on materials. I can recommend one of the most amazing business buying mentors. He took me personally from a net worth of F@$% all to $2,700,000. ONLY IF YOU ARE A "DO'ER" not a talker or thinker.


jasaunders always hasf good advise. Props to you jasaunders

To be wealthy is to manage debt. Trump says your job should be to manage your money and thats it. So dont be scared of debt. Its also easier to get loans on a comp that exists and has history and income.