Many entrepreneurs in Alberta who decide to buy businesses focus on nothing other than the price. Some think the success of the purchase depends on their ability to negotiate a better price. However, the lowest possible price might not be the most critical consideration. An important question is how much of his or her own funds the entrepreneur is willing to contribute to the purchase of the business because that might provide more leverage during negotiations, and encourage lenders to offer additional resources.
A related question involves debt tolerance after using personal assets to secure financing. Will it be necessary to share control, and how much of the control will the entrepreneur be willing to give up? It is crucial to understand the structure of the financing and make sure that the debt load does not cause sleepless nights. At the same time, the vision for the future of the business must be considered.
Does the purchaser plan expansion for the business, and is it necessary to upgrade existing equipment? These matters will also have to feature in the financial structuring. Another critical question is whether the new owner will need the help of the previous owner during the transition. Such support could be crucial to learn about the intricacies of the business and retaining key employees who might be essential to ongoing success.
Being a first-time buyer of a business could be a daunting process during which even one mistake can jeopardize a successful outcome. In Alberta, a skilled business law lawyer can simplify the process. Legal counsel can assist during negotiations and throughout the process to ensure the new acquisition is on secure footing.
