I Want to Buy a Business: 12 Steps to Take Before Making an Offer
If your starting point is “I want to buy a business,” do not begin by negotiating the asking price. Begin by defining what you can operate, finance, and verify. Before making an offer, identify your acquisition criteria, assemble advisers, screen the seller and opportunity, normalize earnings, test transferability, choose a preliminary structure, and decide the […]
“Non-Binding” Letters of Intent Are Not Entirely Non-Binding
You’ve agreed on a price. The broker sends over a non-binding letter of intent. It says right there in paragraph nine that it’s non-binding, so you sign it and figure the real negotiation starts with the purchase agreement. Here’s the short version: some parts of that letter almost certainly do bind you, and they’re usually […]