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Very few people buy businesses on a regular basis, so take advice from someone you can understand. Do not agree to anything you do not understand. You will have to live with the consequences so make sure you make the final decisions, based on your own understanding.
What is the value of the business, property etc. to you. When you have established your value, you can negotiate a price. If the price is not less that the value, do not buy.
Work out the cash flow. It does not matter how profitable a business is, if it does not have sufficient cash to pay it's bills, it will not be able to trade.
Are you buying a business or it's management? If you need the management, how do you know they will work with you? What incentives can you afford to give them?
Decide the purpose and value of Commercial, Legal and Financial Due Diligence reports. You need a report which covers the issues that matter to you, not one full of caveats and devoid of any conclusion. Communicate your concerns to the reporting professional, and if more than one make sure you all know who takes responsibility for what.
Agree an outline of the deal on paper. Take professional advice at the right time. Know the options available to you, but get the main negotiations done before you incur large professional fees.
What warranties are important to you? Are your lawyers and accountants going to determine what is important, or are they going to make sure your agreement delivers what it says? Why are some of the timescales and values being suggested? Ask - the professionals are working for you.
Are the vendors being well advised? Why not help them if you can? They might be grateful and benefit you in some way.
Leave part of the purchase consideration to be dependant on future profits - it will encourage the vendors to make your acquisition successful.
"It's not for sale." How often have you seen an advert for a business? If you think you might like to buy it, let the owner know. Even if the owner does not want to sell now, they might contact you when they do, and if they make the approach the price might be lower.
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