Buying a small business

[Texascrude]

I'd absolutely ask to see the accounting books for the last several years. I'd imagine having owned your own business you'd be able to make good sense of them -- if not hire an accountant or even a local MBA student or something. Make sure you understand what their gross and net incomes are, what are all included in those, and the trends.

Take a good look at their assets / liabilities. The location, lease terms / length etc.

I'd also try and understand why they are exiting, as it may help you negotiate. If they are low on cash, you could probably get a better deal if you pay more upfront. If they just want to retire, they may be more willing to finance it themselves and take payment over several years.

I'd also negotiate a 'hand over' period where they continue to work for a month or so after you've arrived. This would help ease transition with customers and help you learn what they've been doing well and where you could improve their operations.

[MNCold]

What kinds of attorney would handle this kind of paperwork? The business is less than 100K.
Does anyone have any names or recommendations on attorney.
I have some training so I think I can handle the number and accounting.
MNCold.

[JL]

Chris_ut,

Are you talking about sites like legalzoom that was founded by Robert Shapiro(O.J attorney)? Just wondering how certain sites online deal with different legal aspects from different states? Something in California might not apply to Texas. I just think something major like buying a business is better off with a local attorney in town. If you just wanted to write a will for your family, then i guess creating one from an online doc would be ok.

[chris_ut]

Legal documents are typically specific by state.

[studiobtm]

Buy "The complete guide to buying a business" published by Nolo and read it carefully.

[MNCold]

All - Thanks for all the advice. This forum has been very helpful.