The articles are provided for information purposes only, and are not intended as legal advice.


Typically, if you sell a business, the buyer of the business will look at historical financial statements. The current economic downturn is affecting many companies and may continue to do so for some time in the (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


I just spoke to an owner who was looking to sell their property.  It had been for sale for two years with very little activity.  I asked some questions about the purchase price – how did you decided the selling price.  I (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


Once you have found your ideal business that you want to purchase, you will issue a letter of intent.  Usually this is a non binding document which identifies in generalities what you are buying and how you are (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


Unless you have the expertise yourself, it is prudent to use outside help when buying a business.  If you buy the shares of a business and you are become liable for liabilities which you were not aware of – if you did (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


When you purchase the assets of a business, you must allocate the purchase price.  It is advantageous to allocate the purchase price to items which provide the higher write off.  For example, only 50% of the (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


If you purchase the assets of a company, you get what is in the purchase and sale agreement.  if you thought that something was included but it is not in a closing schedule of the purchase and sales (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


When you purchase shares of a company, you are acquiring all of liabilities of the company.  This includes current, future, unrecorded and tax liabilities.  If you acquire a company which has unreported income – i.e. (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


There are various methods of valuing a business, discounted cashflow for larger companies but many people use multiples of normalized earnings for valuing smaller businesses.  Normalized earnings is net (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


How do you determine if you are paying too much for a business?  When you buy a house, you can see what other houses have sold in the area but in a business, many businesses are private and you may not be able (more…)


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