This blog is part of a series of blogs on buying a business. We are first exploring the qualities you need when deciding to whether or not you are should buy a business. I encourage you to go back and read the previous blogs.
This week we are discussing access to expertise.
Access to Expertise. Most successful transactions require the Buyer to assemble (and pay the costs of) a “team” of players: bankers, accountants and lawyers all play critical roles in the transaction. Business brokers can also be an extremely valuable asset. Although many Buyers seek to hold down their acquisition costs by trying to fill some or all these functions themselves, in case after case, the legal fees to “fix” a transaction (if and when that is even possible) ALWAYS costs more than assembling/paying a team to do it right the first time. Depending on the size and complexity of the transaction Buyers should anticipate that acquisition costs/professional fees will be about 10% of the purchase price of the business. When selecting your professionals, you should carefully evaluate their experience and ability to get things done.
Bottom line: having a team of people helping you buy a business will help you prevent mistakes that will cost you time and money.
If you would like assistance in regards to the purchase/sale of a business, please contact me at http://www.kreamerlaw.com.