There is a lot to consider when taking over a business. Business valuation, financing, tax and legal aspects and so on. At Truforte Business Group we often find that investors and business owners enter the process of a company takeover in a manner that raises questions. In this post we highlight the importance of proper preparation when buying or selling a Florida business.

Good preparation is essential

Whether buying or selling a business, good preparation and planning is essential. First, it must be clear why you actually want to sell your company or why you would like to take over that one specific company? After all, every company takeover always has a reason. By asking yourself the following questions before entering negotiations, you force yourself to think critically about a company takeover:

• Is my company attractive to potential buyers? • What are the tax consequences of the planned company takeover? • Which business form is most suitable? • What is a correct buying or selling price? • What will my future look like after the acquisition? Am I going to take on a certain position in the company and, if so, which one? • How will current staff and premises lease contracts be managed after the takeover?

These questions apply to both buying a business and selling a business. Incidentally, there are many more questions to ask. The above list is therefore certainly not exhaustive and is only intended to give you an idea of what is involved in a business takeover. In practice it is often very difficult to answer these kinds of questions.

As you can see, taking over a company is often complicated and risky undertaking. Without the right knowledge and expertise, you run the risk of serious legal and tax consequences. We recommend that you engage an expert when buying or selling a business. A business broker can help you from the very first step up to and including the completion of the purchase or sale. They are independent professionals and will look at the process rationally to advise you so you can make informed decisions. For more information, please visit Truforte Business Group.