How to Get the Best Price When Buying a Business
1. Determine Your Must Have's and Budget
Before you begin the process you want to clearly know where you stand. This will avoid confusion in the future.
2. Do Your Research
Each property or business comes with a unique set of market variables. Learn about the geographical location, market value locally and industry standards so your offer is competitive in the market.
3. Know the Business You are Buying
Make sure you have a strong understanding of the business you are buying. This will equip you to be able to understand its history and potential. You will also be able to spot potential problem areas as well.
4. Protect Yourself
Ask the seller to invest in the business. This can reveal whether or not a seller is simply trying to pass problems off on someone else.
5. Don't Be Afraid of Negotiation
Negotiate even if it makes you uncomfortable. You want to leave the table feeling that you have gotten a great deal. This is where a professional business broker can help you reach the terms that you really want.