Absolutely! A good business broker can find, research, and present to you multiple ways of achieving your business objectives; and, help you identify the one that is the best fit with your business and personal interests. An experienced business broker can also help you avoid landmines, pitfalls, and skeletons in the closet. This does not mean you should not put a team together to help you. In addition to a business broker, you should always involve a lawyer, an accountant (CPA), and any other professionals that are relevant to the particular industry and business transaction.

Do your homework when selecting…

Buying an existing business offers many benefits. Perhaps one of the most important ones is that you get immediate cashflow. In addition, it is easier to get financing from banks or other institutions, or funding from investors, because there is a financial history that they can evaluate. Another benefit is that, just like for the new owner, the risk to banks and investors will be reduced by the other elements that will be discussed further down.

The new owner will get a business that took 5 to 30 years of effort and development by the current owner, but he will…

BUYING A BUSINESS COMPARED TO BUYING REAL ESTATE

A lot of people assume that buying or selling a business is just like buying or selling real estate, a commercial building, or their house. I don’t think that this is an appropriate comparison. Buying or selling a business is a much more complicated, risky, and difficult process. The various differences can be grouped into transactional areas related to asset types, strategic relationships, liquidity, and risk.

ASSET TYPES

Often, buying or selling a business includes the purchase of commercial real estate. …

Sal Acosta

Sal is a business broker with over 30 years of business experience, both as a small business owner and as a corporate executive for global corporations.

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