Buying Into An Existing Business «Easy - Version»

(Retirement and health are good; "the industry is dying" or "lawsuit pending" are red flags.)

A common path for US buyers, often requiring only 10% down. buying into an existing business

Review at least 3 years of tax returns, P&L statements, and balance sheets. Watch out for "owner add-backs" (personal expenses run through the business). (Retirement and health are good; "the industry is

Before looking at listings, decide what kind of "buy-in" you are doing: Before looking at listings, decide what kind of

Does it rely entirely on the owner's personal relationships? If so, the value may disappear when they leave.

Part of the purchase price is paid only if the business hits certain profit targets after you take over. 6. The Transition Plan

Talk to accountants, lawyers, and commercial brokers. They often know who is looking to exit before anyone else. 3. Initial "Sniff Test"