Mastering the Approach to Buying a Business Part 1: Uncover the Reason for the Sale

For the entrepreneurs among us who plan on buying one or more businesses, you’ll know that there are opportunities to purchase all around you. You can be told by a friend, find out from a broker, or even hear about it in the news. Buying a business, however, is no joke especially with the huge amounts of money that’s usually involved so you’ll want to approach this opportunity or these opportunities in the best way possible that puts you in very favourable conditions.

This series of articles is meant for just that. We’ll be covering various aspects of the “approach”, and show you how you can get the best out of these situations.

business-for-sale

Too good to be true?

So let’s say you came across this deal that just sounds too good to pass up – whether it’s a well-known business that’s selling for a really affordable rate or a small business that’s selling with really flexible terms – always keep in mind that you should never blindly leap into any opportunity. The first step you’ll want to do is to find out the real reason why this sale is even being made. Was the business in trouble? Was it not profitable? Depending on the actual reason of the sale, you may end up wanting to rethink about the purchase.

Do your homework

Of course, you can ask the seller himself about it but you should also expect that if the reason for the sale is one of the two reasons above, the seller may not admit it openly. There are many reasons people sell their businesses. Just remember, this is a step you’ll want to do right because it could determine whether or not you’re heading for a financial fortune or financial trap.

About Brightblue Transition Solutions

Located on Vancouver’s North Shore we are the premier business broker in the lower mainland, contact us if you need any help buying or selling a business in the greater Vancouver or lower mainland areas.

 

Posted in All Posts, Articles, Buying a Business
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2 Pings/Trackbacks for "Mastering the Approach to Buying a Business Part 1: Uncover the Reason for the Sale"
  1. […] the previous article in this series, we explained that it’s important to understand why a business is being sold.  In this article we explain how to do your […]

  2. […] Previously, we explained that it’s important to understand why a business is being sold and the importance of completing your due diligence.  Once you’re done with those, it’s time to negotiate a deal. […]

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