The Importance of Finding the Right Broker

When it comes to selling or buying a business, the expertise of a local business broker can be invaluable, especially for small and lower-middle-market businesses. The decision to find local business brokers is more than just a procedural step; it’s about partnering with someone who can provide deep insights into the local market, offer personalized service, and guide you through the complexities of business transactions. This article aims to explore the crucial aspects of finding the right local business broker, tailored specifically for business owners who need a broker with a strong understanding of their unique market dynamics. From identifying your specific needs to evaluating a broker’s credentials, we will delve into the key steps to ensure you partner with a broker who can effectively meet your business goals.

Identifying Your Needs: What to Look for in a Broker

The first step in your journey to find local business brokers is to clearly define what you are looking for. Are you seeking a broker for selling your business, buying a new one, or perhaps both? Understanding your primary objective is crucial. A broker specializing in selling might have different skills and networks compared to one who primarily assists buyers.

Consider the following factors when looking for a local business broker:

1. Market Knowledge: Your broker should have a thorough understanding of the local business landscape, including current market trends, pricing, and buyer behavior.
2. Experience: Look for a broker with a proven track record in successfully closing deals similar to what you are aiming for. Their experience can be a significant advantage in navigating the complexities of the sale or purchase process.
3. Reputation: A broker’s reputation in the industry can speak volumes about their professionalism and success rate. Seek out testimonials, reviews, or case studies that demonstrate their capability and reliability.
4. Communication Skills: Effective communication is key. Your broker should be able to articulate complex ideas clearly and keep you informed throughout the process.
5. Negotiation Skills: A skilled negotiator can make a significant difference in the outcome of a deal. Your broker should have a strong track record of negotiating favorable terms for their clients.

Utilizing Online Resources and Networks

In today’s digital age, online resources are invaluable in helping you find local business brokers. Start by visiting professional brokerage websites, which often provide detailed information about their services, team members, and past successes. Many brokers also maintain active social media profiles and blogs, where you can gain insights into their expertise and approach to business sales and acquisitions.

Professional networks and associations can also be a rich resource. Look for brokers who are members of recognized industry organizations, as these affiliations often require adherence to certain professional standards. Attending local business events, seminars, and workshops can also provide opportunities to meet and evaluate potential brokers in person.

Another effective strategy is to leverage your professional network. Reach out to colleagues, advisors, and other business owners for recommendations. Personal referrals can often lead you to reputable brokers who have proven their worth in real-world scenarios.

Evaluating Credentials and Experience

Once you have a list of potential brokers, the next step is to evaluate their credentials and experience. This due diligence is crucial in ensuring you choose a broker who is not only knowledgeable but also a good fit for your specific needs.

Consider the following when evaluating a broker:

1. Licensing and Certifications: Verify that the broker is licensed to practice in your state. In Texas, there is no license, but in certain states, you need a real estate license to be a business broker. Additionally, look for any certifications they may hold, such as the Chartered Financial Analyst (CFA) designation, which indicates a higher level of professionalism and expertise.
2. Track Record: Review the broker’s track record in handling business sales or purchases. How many deals have they closed? What types of businesses have they worked with? This information can give you an idea of their experience and success rate.
3. Client Testimonials: Client testimonials can provide valuable insights into a broker’s working style and effectiveness. Look for feedback that highlights the broker’s strengths and how they have added value to previous transactions.
4. Interview Process: Arrange meetings or calls with potential brokers. This is an opportunity to ask specific questions about their experience, approach, and how they would handle your business sale or purchase. Pay attention to how well they understand your industry and your specific needs.
5. Compatibility: Finally, assess whether the broker’s style and approach are compatible with your own. A good broker-client relationship is based on trust, mutual respect, and clear communication.

Making the Decision: Selecting the Right Broker

After conducting thorough research and evaluations, the final step is to make an informed decision. Choosing the right broker to find local business brokers is a critical decision that can significantly impact the outcome of your business transaction. It’s essential to weigh all the information you’ve gathered and trust your judgment. Consider not only the broker’s professional qualifications and track record but also how well they align with your business philosophy and goals.

When making your decision, reflect on the following:

1. Alignment with Your Goals: Ensure the broker understands and aligns with your specific goals, whether it’s achieving the highest sale price, finding a buyer who will maintain the business legacy, or securing a quick sale.
2. Personal Rapport: The relationship with your broker should be based on trust and mutual respect. Choose a broker with whom you feel comfortable communicating openly and honestly.
3. Terms of Engagement: Understand the terms of engagement with the broker, including their fee structure, contract length, and specific services provided. Ensure these terms are clear and agreeable to both parties.
4. References and Reviews: If possible, speak to past clients to get firsthand accounts of their experiences with the broker. This can provide valuable insights into the broker’s working style and effectiveness.

Once you have selected a broker, it’s important to maintain open lines of communication throughout the process. A good broker will keep you informed, offer expert advice, and work diligently to achieve the best possible outcome for your business sale or acquisition.

External Resources for Further Guidance

1. How to Choose the Right Business Broker – Biz Buy Sell
2. Four Questions Sellers Must Ask To Choose The Right Business Broker – Forbes

These resources offer valuable advice on maximizing business value and effective entrepreneurship strategies, which can be beneficial when working with a business broker.

Conclusion

Determining the right time to sell your business is a significant decision that requires careful consideration of various factors. From evaluating market conditions and assessing your business’s lifecycle to aligning the sale with your personal goals, each aspect plays a crucial role in deciding the optimal timing.

In conclusion, finding the right local business broker is a crucial step in the process of selling or buying a business. The right broker can provide invaluable expertise, market insights, and guidance, making the transaction smoother and more successful. Remember, the decision to find local business brokers is not just about hiring a service provider; it’s about forming a partnership that can significantly impact your business’s future. Take the time to research, evaluate, and choose a broker who not only meets your professional criteria but also aligns with your personal and business values.

If you’re a small or lower-middle-market business owner looking to sell or buy a business, consider reaching out to experienced local brokers. With the right guidance and expertise, you can navigate the complexities of the market and achieve your business objectives. Start your journey today to find local business brokers who can help turn your business goals into reality.

Introduction

When it comes to selling a business in Austin, the journey from listing to closing can be intricate and fraught with challenges. This is where the expertise of Austin business brokers becomes invaluable. These professionals do more than just connect sellers with buyers; they add significant value to the entire sale process. In this article, we explore the multifaceted role of business brokers and how they can transform the sale of your business. Understanding the value of business brokers is crucial for any business owner looking to navigate the complexities of the market and secure the best possible deal.

The Role of Business Brokers in the Sale Process

Business brokers serve as the linchpin in the sale of a business. Their role encompasses a range of activities, from the initial business valuation to the final handover. In Austin, a city known for its vibrant economy and diverse business landscape, brokers bring local market knowledge that is critical for a successful sale. They understand the nuances of the Austin market, including buyer trends, sector-specific dynamics, and regulatory environments. This local expertise is particularly beneficial for small and lower-middle-market businesses, which often require a tailored approach to attract the right buyers.

Valuation Expertise

One of the most critical stages in selling a business is valuation. Determining the right price is a complex task that requires deep understanding and experience. Austin business brokers bring this expertise to the table. They use a variety of methods to value a business accurately, considering factors such as financial performance, market position, and growth potential. A well-valued business not only attracts serious buyers but also ensures that the owner receives fair compensation. Brokers also help business owners understand how different valuation methods might impact the sale, guiding them towards the most beneficial approach for their specific situation. This is just one aspect of the value of business brokers.

Marketing and Finding the Right Buyers

Marketing a business for sale is more than just listing it on a platform; it requires a strategic approach to reach potential buyers who are a good fit. Austin business brokers excel in this area. They develop comprehensive marketing plans that highlight the unique selling points of a business. Utilizing their extensive networks, both locally and beyond, they can connect sellers with a pool of pre-qualified buyers, increasing the chances of a successful sale. Their marketing efforts often include a mix of online listings, targeted outreach, and leveraging industry contacts, ensuring that the business gets the right visibility among potential buyers.

Negotiation and Deal Structuring

Negotiating a business sale is a delicate process where the skills of an experienced broker can be the difference between a good deal and a great one. Austin business brokers bring their negotiation expertise to the forefront, working to get the best possible terms for the seller. They understand the art of deal structuring, balancing the needs of both parties to reach a mutually beneficial agreement. This includes navigating complex aspects such as financing arrangements, earn-outs, and transition services agreements. Their goal is to ensure that the deal not only reflects the true value of the business but also aligns with the seller’s objectives and future plans.

Navigating Legal and Financial Complexities

One of the most daunting aspects of selling a business is the intricate web of legal and financial complexities that come with it. This is where CGK Business Sales distinguishes itself. They collaborate with exceptional, outside M&A attorneys, ensuring that every legal detail is meticulously managed. These legal experts specialize in handling complex paperwork and navigating the myriad of legal requirements integral to the sale process. Their involvement is crucial in drafting sale agreements, ensuring compliance with local and federal regulations, and safeguarding against potential legal pitfalls. This collaboration not only streamlines the process but also instills confidence and peace of mind in business owners, knowing that their sale is in capable hands.

The Impact of a Broker on the Sale Timeline

The involvement of a skilled business broker like CGK Business Sales can significantly impact the sale timeline. Their strategic approach to marketing, combined with their extensive network, ensures that businesses are exposed to the right buyers quickly and efficiently. This focused approach means that businesses spend less time on the market, which is crucial in maintaining business momentum and minimizing the overhead costs associated with prolonged sales processes. A quicker sale also allows business owners to capitalize on market conditions and swiftly move forward with their future plans or investments. In my experience, this is a crucial element of the value of business brokers.

Maximizing Sale Value through Strategic Planning

CGK Business Sales excels in strategically planning each phase of the sale process to maximize the business’s sale value. They conduct thorough market analysis and tailor their strategies to highlight the unique strengths and potential of the business, ensuring it appeals to the right demographic of buyers. Their understanding of market trends and buyer behavior in Austin enables them to position your business optimally, ensuring that it stands out in a competitive market. This strategic planning is crucial in not only attracting interest but also in commanding a premium price for the business.

The Comprehensive Approach of CGK Business Sales

CGK Business Sales adopts a comprehensive approach to selling businesses. This approach encompasses everything from initial valuation to final negotiations and closing. Their team works closely with business owners to understand their goals and tailor their services accordingly. They provide regular updates and insights throughout the process, ensuring transparency and keeping business owners informed and involved. This comprehensive approach ensures that no detail is overlooked and that every aspect of the sale is handled with precision and care.

External Resources and Further Reading

For those seeking additional insights into the business sale process, the following resources are invaluable:

1. Maximizing Business Sale Value – This Forbes article provides strategies to enhance the sale value of a business, offering insights into preparation and positioning for a successful sale.
2. Effective Business Sale Strategies – Harvard Business Review offers a guide on increasing sales, which should increase your EBITDA and your business sale price.

Conclusion

In conclusion, the value of business brokers, particularly those at CGK Business Sales, bring to the table is undeniable. Their expertise in valuation, marketing, negotiation, and legal intricacies ensures that your business is not only sold but sold right. The collaboration with top-tier M&A attorneys further underscores their commitment to providing a comprehensive and seamless sale experience.

If you’re considering selling your business and want to ensure it’s handled with the utmost professionalism and skill, reach out to CGK Business Sales. Their team of experts is ready to guide you through every step of the process, ensuring you get the best possible outcome for your business sale. Visit CGK Business Sales today to start your journey with a team that values your business as much as you do.

Navigating the Complexities of Business Debt in Sales

Introduction

When contemplating what happens to debt when a business is sold, many business owners find themselves navigating a maze of financial intricacies. This concern is especially pronounced for small and lower-middle-market business owners who have worked tirelessly to build their enterprises. The process of selling a business is multifaceted, and understanding how existing debt plays into the equation is crucial. This article aims to shed light on this topic, providing clarity for sellers and potential buyers alike.

The Typical Scenario: Cash-Free, Debt-Free Deals

In the realm of business sales, especially within the small and lower-middle-market sectors, the term “cash-free, debt-free” is more than just industry jargon. It represents a standard approach to business transactions, ensuring that the business is handed over without any cash or debt attached to it. But what does this really mean for the seller and the buyer?

A cash-free, debt-free deal essentially ensures that the proceeds of the business sale are adjusted, based on the amount of cash or debt in the business at the time of sale, while not adjusting the actual purchase price of the deal. For instance, if a business is sold for $1 million and has $100,000 in debt, the seller would typically receive $900,000 in actual proceeds, using the remaining amount to clear the debt. Conversely, if the business holds $100,000 in cash and no debt, the proceeds to the seller are more than the purchase price. This ensures that the buyer acquires the business without any financial encumbrances and the seller walks away without any lingering financial obligations tied to the sold business.

So, why is this approach so prevalent, especially in the small and lower-middle-market sectors?

1. Clarity and Simplicity: One of the primary reasons is the clarity and simplicity it brings to the transaction. Both parties have a clear understanding of what they’re getting into. The buyer knows they’re acquiring a business free from financial burdens, and the seller knows exactly how much they’ll walk away with post-sale.
2. Risk Mitigation: For buyers, assuming a business’s debt can be risky. Without a comprehensive understanding of why the business is in debt and the terms of that debt, buyers could find themselves in a precarious financial situation post-acquisition.
3. Facilitates Financing: Buyers often need to secure financing to purchase a business. Lenders are more likely to approve financing for a business acquisition that doesn’t come saddled with debt. A clean financial slate makes the business a more attractive proposition for financial institutions and is mandated in SBA deals.
4. Valuation Accuracy: Determining the value of a business can be complex. Removing debt from the equation simplifies this process, ensuring that the business is valued based on its operational worth and not clouded by its financial obligations.

In essence, the cash-free, debt-free approach is about ensuring a smooth transition. When pondering what happens to debt when a business is sold, sellers should be reassured that in most scenarios, they won’t be passing on their financial burdens to the new owner. Instead, they’ll be settling those obligations as part of the sales process, providing a clean break and a fresh start for both parties.

Exceptions to the Rule: When Debt Might Transfer

While the cash-free, debt-free approach is standard, especially for small and lower-middle-market businesses, there are exceptions. In some cases, a buyer might be willing to assume some or all of a business’s debt. This is more common in larger transactions or when the business has significant assets that outweigh its liabilities. But why would a buyer agree to this, and under what circumstances might it occur?

1. Strategic Value: Sometimes, the strategic value of a business to a buyer might be so high that they’re willing to take on existing debt. This could be because the acquisition offers a significant market advantage, eliminates a competitor, or provides access to a new customer base or technology.
2. Asset Value: If the business has substantial tangible assets, such as real estate, machinery, or inventory, that exceed the value of its debt, a buyer might consider assuming the debt, especially if they believe they can leverage these assets more effectively.
3. Structured Deals: In some cases, deals can be structured in a way that makes it beneficial for both parties for the buyer to assume the debt. This might involve a lower purchase price or other favorable terms for the buyer.
4. Stock Sale: In a stock sale, the buyer is purchasing the shares of the company rather than its assets. This means they’re buying the company as-is, including its debt. However, stock sales are less common for small businesses and are typically more complex.

It’s essential to note that while these scenarios exist, they’re the exception rather than the rule, especially in the small and lower-middle-market sectors. When considering what happens to debt when a business is sold, most sellers should anticipate a cash-free, debt-free transaction.

Understanding Enterprise Value and Its Implications

To fully grasp the intricacies of what happens to debt when a business is sold, one must understand the concept of enterprise value. In simple terms, enterprise value is the total value of a business, including not only its equity but also its debt and excluding its cash and cash equivalents.

Why is this important? Because it provides a holistic view of a company’s total value, which can be crucial in negotiations. For instance, if a business has significant debt, its enterprise value might be considerably lower than its equity value. This can impact the selling price and the terms of the deal.

Here’s a breakdown of its implications:

1. Negotiation Leverage: Understanding enterprise value can give sellers leverage in negotiations. If a business has a high enterprise value despite its debt, it indicates strong operational performance, which can be a selling point.
2. Clearer Picture for Buyers: For buyers, the enterprise value offers a clearer picture of what they’re getting into. It allows them to assess the business’s true value, considering all its financial aspects.
3. Informed Decision Making: For sellers, understanding how debt impacts enterprise value can inform decisions long before the business is put on the market. For instance, they might prioritize paying down debt to boost equity value ahead of a sale.

In the context of what happens to debt when a business is sold, enterprise value plays a pivotal role. It underscores the importance of considering all financial aspects of a business, not just its profitability or revenue.

The Role of Business Brokers in Austin in Debt Negotiations

Navigating the complexities of selling a business, especially when debt is involved, can be daunting. This is where the expertise of business brokers in Austin becomes invaluable. But how exactly do they assist in this process?

1. Expert Valuation: Business brokers provide an accurate valuation of the business, considering all liabilities and assets. This ensures that the impact of debt on the business’s value is appropriately accounted for.
2. Strategic Guidance: They offer strategic advice on how to handle existing debt before the sale. This might include recommendations on paying down certain debts or restructuring for better terms.
3. Negotiation Assistance: When it comes to the actual sale, business brokers play a pivotal role in negotiations. They ensure that the terms of the deal, including how debt is addressed, are favorable for the seller.
4. Clarifying the Process: For many business owners, understanding what happens to debt when a business is sold can be confusing. Brokers demystify this, explaining the process and its implications clearly.

Engaging with a seasoned business broker can make the difference between a smooth, successful sale and a challenging, drawn-out process. Their expertise is particularly crucial when navigating the intricacies of business debt.

The Bigger Picture: Debt in the Context of Business Sales

While the primary focus of this article has been on what happens to debt when a business is sold, it’s essential to understand that debt is just one piece of the puzzle. In the grand scheme of business sales, several factors come into play, and debt is just one of them.

1. Operational Strength: Even if a business carries debt, its operational strengths, such as a loyal customer base, strong brand recognition, or proprietary technology, can make it attractive to buyers.
2. Future Potential: Buyers aren’t just purchasing the business’s current state; they’re investing in its future potential. If the business shows promise for growth, even existing debt might not be a deterrent.
3. Market Conditions: The broader market conditions play a significant role. In a seller’s market, businesses might find it easier to attract buyers, even if they’re not entirely debt-free.
4. Non-Financial Assets: As mentioned earlier, non-financial assets can significantly boost a business’s appeal. This includes factors like brand reputation, intellectual property, or strategic market positioning.

In essence, while understanding what happens to debt when a business is sold is crucial, it’s equally vital to see the bigger picture. Every business is unique, and its value proposition extends beyond its balance sheet.

Conclusion

Deciding to sell a business is a significant step, and understanding the financial intricacies, including what happens to debt when a business is sold, is paramount. While the general rule in the small and lower-middle-market sectors is a cash-free, debt-free transaction, exceptions and nuances exist. By partnering with professionals like CGK Business Sales, business owners can navigate these complexities with confidence, ensuring a favorable outcome that reflects the true value of their enterprise.

If you’re looking to get into the business world by purchasing an existing company, you aren’t alone. Despite current economic conditions, businesses are selling more frequently and for higher prices than ever before. Here is a comprehensive checklist to help you buy a new business. There are numerous reasons to buy an established company instead of starting from scratch, including:

• Cash flow
• Established market segment and customer base
• A working business model
• Brand reputation
• Existing infrastructure
• Relationships with vendors and clients

We all know that startup ownership comes with its share of risks—as well as a high failure rate. When the odds are stacked against you, buying an established company gives you a better chance of success. Here, we’ll go over some things prospective owners should consider when buying a business.

Why Checklists Are Important for Business Buyers

When working with business brokers in Austin, buyers must consider multiple factors. Even if you know what you’re looking for, it’s a good idea to make a list of must-haves. The checklist below will help you avoid pitfalls and get the information needed for informed decision-making.

Deciding Where to Invest

As you’re considering the purchase of an existing business, the first step is to decide where to invest your money, time, and effort. There are thousands of choices out there and knowing what to look for will help you choose the right company.

Multiple business structures, including LLCs, corporations, and sole proprietorships, are available. However, since most deals are asset deals, your corporate structure, as the buying entity, should be discussed with an M&A attorney and CPA, as you start the process. Those buying businesses in Austin should look for profitability, consistent cash flow, and a good reputation within the community. These factors, among others, will ensure that a business is a good short- and long-term investment.

Researching Options

Next, you’ll need to learn about options within each business industry. When purchasing an existing company, it’s best to narrow the search to those within your desired category. Get a head start by searching local and online business listings or asking for recommendations.

As you’re narrowing the field, ensure that you’re focusing on solid investments by reading up on the companies in which you’re interested. Find out about each company’s reputation and financial performance and read online reviews. Finally, in-person visits will give potential buyers an idea of how a business is operated and managed.

Getting Prepared

Before buying a business, you’ll need to get your affairs in order. Start by putting together a personal financial statement and a buyer profile, which should outline your work experience and how it relates to companies you may want to purchase. 

The gathering of these documents may seem tedious and time-consuming, but they demonstrate that you’re serious about buying a business. Because this information is so sensitive, it’s best to keep it under wraps until you’ve found a business broker or a company to buy.

Another great strategy is to get prequalified for a loan through the Small Business Administration, or to get financing through a non-SBA commercial loan or a withdrawal from a retirement account. When buyers take this step, they’ll know just what they can afford—and they’ll have an edge over those who look for businesses first and find financing later.  The SBA has a personal financial statement and buyer profile documentation that you will fill out for your bank of choice.

Learning the History of the Business

Every potential business buyer should find out why the current owner has decided to sell. The answers they offer will give clues as to the company’s quality and viability. Is the owner ready for retirement or an occupational change? Great! Are they getting out of the field because of market fluctuations and changing regulations? Those changes may not be very beneficial.

If the owner provides vague answers—or worse yet, none—keep digging into competitor, market, and industry data until you’re satisfied. Many business buyers learn about industry outlooks by working with trade associations and analyzing census and economic data. As you’re talking to the current owner, find out about their background and that of their management team. Are their skills mission-critical, or can the company survive without them?

Assessing the Company’s Finances

Now, you’ll need to decide whether the business’ earnings will sustain your lifestyle and look for ways to increase them. Ask an accountant to look over the company’s last three years of financial statements to see if its revenues are rising or falling. It’s also a good idea to ask for the past three years’ tax returns and financial ratios, including gross profit/net sales, net income/total assets, and net income/net worth.

Buying an existing business means asking a lot of questions. Is the company in debt, and if so, what’s the nature of that debt? Are any bills or invoices past due? How well does the business manage its finances? You’ll need to figure out how receivables are handled. Do customers pay on delivery or use the net 90 system? While it is possible to change invoice terms once you’ve taken over, loyal customers may be resistant to those changes.

Working Through Legal Matters

Buying a business is difficult without determining the legal structure under which it was formed. If it’s a stock sale, it’s an as-is purchase, whether it’s an LLC or a S Corp—and you’re also getting everything that comes with it, including assets and contracts, though this usually without any debts.

If you’re planning to change the company’s legal structure, you’ll have to file the conversion with the state. It’s not allowed in every area, and in places where conversions aren’t recognized, buyers must dissolve the existing entity and start over.

Ask an attorney to review the company’s contracts for hidden limitations and exclusions, including leases for property, vehicles, and equipment. Will all these contracts transfer to you as the new owner? The current owner should have contact information for government agencies that handle zoning and other regulations, so you’ll always be aware.

Learn about the company’s proprietary processes and patents, and if there are any, ensure that they’re under the organization’s name. What happens to those all-important rights after the sale has been finalized, and will you still be able to access the technology?

Finally, new business owners must take steps to protect themselves from legal repercussions. When buying an operational business, find out if there are any ongoing or pending lawsuits—or if litigation has been filed in the past.  While this is why most deals are asset sales, ongoing litigation could negatively impact a company’s reputation.  However, many companies get sued for frivolous reasons, so the presence of litigation shouldn’t be an automatic deal-killer.

Forming Sales and Marketing Strategies

New owners should familiarize themselves with the company’s market segment and learn whether it’s shrinking or growing. With some research, you’ll see what kind of reputation the business has and gauge the level of brand awareness in the target market. Strong brands are some of the most valuable assets businesses can have.

Read the company’s social media pages and online reviews to see what past and current customers are saying about the business, its workers, its products, and its services. Everyone is online these days, which means that you can learn a great deal about a company and its customer relationships on sites like Instagram, Twitter, and Facebook.

Next, it’s time to learn about the competition. What are people saying about other companies in the same space? Are their products and services comparable, or are they offering something that can’t be found anywhere else? How strong are their brands and social media presences? The answers to these questions will give you an idea of what you’ll be up against as a new business owner.

Learning About the Workforce

If the company you’re considering buying has employees, it pays to research them as well as their benefits and compensation. By doing this, you’ll find out whether they’re satisfied with the current arrangement or if you’ll need to sweeten the deal to get them to stick around. Ask your lawyer to review all worker contracts to ensure that the company is following state and federal employment laws.

Getting State Licenses and Permits

As a purchaser, you’ll need to pay attention to the requirements set forth by the Texas Department of Licensing and Regulation. These licenses have certain requirements that must be fulfilled when businesses change ownership. If a business is found to be operating without the right licenses, the owner may receive a cease-and-desist order, be fined, or lose their right to do business in the state. Any decent comprehensive checklist to help you buy a new business should include this research.

Asking About Business Insurance

All businesses need insurance, and the company you’re buying is no exception. The carrier the current owner is using is a great place to start the search for coverage, but it doesn’t have to end there. Insurance policies aren’t transferable in asset sales, and business buyers should have binders in place when closing deals. In areas prone to natural disasters, it may be hard to find the right coverage—so be sure to start looking for business insurance as soon as possible.

Buying a Business: It’s All About What You Know

While this comprehensive checklist to help you buy a new business is enough to get most business buyers started, you may have other questions—which will largely depend on your needs, industry knowledge, and plans for the company. Ask your CPA, attorney, and business broker for advice, and use their answers to make informed decisions. The team at CGK Business Sales is here to make your transaction a complete success; call or click here to contact us.