Lucido Global Business Brokers

Lucido Global Business Brokers

Adding Value, Creating Wealth

  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us

3 Overlooked Areas to Consider When Buying a Business

By Sam Mohlenhoff Oct 30

Without a doubt, there are a multitude of factors that go into buying a business. Since there are so many variables involved, it is easy to potentially neglect some important aspects. In this article, we will explore some of the key areas that can be overlooked when buying a business. Three areas in particular warrant special attention.

#1 Legal Documents

Upon first glance, it might seem obvious that all legal documents should be evaluated; however, many buyers forget that all legal documents are important and should be given weight. In short, there is no such thing as an irrelevant legal document, as one never knows what problems could be lurking within any given legal document. 

For this reason, you’ll want to carefully examine any legal document before making a purchase. The stakes are simply too high to not evaluate everything from trademarks and copyrights to leasing agreements.

#2 W-2 and 1099 Forms

It is important to note whether or not 1099 forms were given out instead of W-2 forms. The reason is that the IRS has very specific rules regarding these forms. The last thing that any buyer of a business wants is to sign on the dotted line only to discover that there are problems with the IRS. Taking ownership of a new business only to learn that there are IRS issues is something that should clearly be avoided.

#3 Retirement Plans

Just as it is vital to look over all financial documents, including W-2 and 1099 forms, the same holds true to evaluating retirement plans. You shouldn’t buy a business unless you know if the business’s qualified and non-qualified retirement plans are completely up to date with the Department of Labor. A failure to properly evaluate a given company’s retirement plans can be a very costly mistake.

Ultimately, there are many potential topics that can be overlooked when buying a business. In this article, we outlined three areas, but in reality, there are many more. This fact underscores the tremendous importance of working closely with a business broker, as well as other trusted professionals, such as lawyers and accountants, in order to properly vet any business that you are considering. One of the key steps in buying any business is to take every possible step to perform due diligence. No business is a flawless enterprise, but a seasoned business broker or M&A advisor can help you to successfully chart a path forward.

Copyright: Business Brokerage Press, Inc.

Grand Warszawski/BigStock.com

The post 3 Overlooked Areas to Consider When Buying a Business appeared first on Deal Studio – Automate, accelerate and elevate your deal making.

Categories: Buyer Articles

Prev
Next

Featured Businesses

Subscribe to our Newsletter

No worries, your information is safe with us. We hate spam too!

From Our Blog

3 Ways to Make Your Business Appealing to Buyers

August 6, 2022

If you are like most business owners, you have never sold a business before and might not have a … Read More »

Three Reasons Why You Might Want to Own a Business

July 23, 2022

Have you been thinking that business ownership is for you? Many people are committed to the idea of … Read More »

4 Takeaways from the Latest BizBuySell Quarterly Report

July 16, 2022

BizBuySell is an online resource that focuses on offering unique content that specifically addresses … Read More »

The True Meaning of a Fairness Opinion

July 2, 2022

Many people assume they know what “fairness opinion” means because they are familiar with the term … Read More »

Telling the Story of Your Business

June 18, 2022

Often selling a business comes down to storytelling. The buyer and seller are the main characters of … Read More »

Is it Possible to Buy a Business Without Collateral?

June 10, 2022

When it comes to getting a loan, you can be certain that a bank will want collateral. This is true … Read More »

Global Business Brokers

Contact Us

Lucido Global Business Brokers
Keller Williams Coral Gables
550 Biltmore Way PH II A-B
Coral Gables, FL 33134
Office (305) 662-7325
Direct (954) 913-5464
rod@globalbusinessbrokers.net

Adding Value, Creating Wealth

  • 3 Ways to Make Your Business Appealing to Buyers
  • Three Reasons Why You Might Want to Own a Business
  • 4 Takeaways from the Latest BizBuySell Quarterly Report
  • The True Meaning of a Fairness Opinion
  • Telling the Story of Your Business

Join Our Team

Copyright © 2022 Lucido Global Business Brokers
MENU
  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us