Chapter 14
How Do You Know Whether Youâre Ready to Buy?
In This Chapter
Understanding the elements that drive a business purchase
Identifying the right business
Planning the purchase and stepping through the purchase process
Continuing valuation after you seal the deal
If youâve ever watched smart business moguls in action, you may have thought they had a sixth sense about business opportunities; they pounce when others seem to be standing around aimlessly. But behind every great intuitive business mind is usually something more powerful that you donât see: preparation, which is what this chapter is all about. Proper valuation is part of the necessary preparation that goes into any successful purchase of a business.
Knowing What Typically Drives a Business Purchase
Clearly, the dream of owning the hair salon or the boutique down the street motivates people to strike out on their own. Yet like most things that look good from street level, businesses require closer scrutiny.
A business transaction is a courtship. Although friendly (or unfriendly) strangers at the start, both sides get to know each other as the process moves along. Always be on the lookout for changes in the sellerâs mood or the involvement of associates or family members in the discussions. (If you havenât read Chapter 11, you may want to do so just to get a broader picture of how family goals â and ...
