Buying Into An Existing Business < AUTHENTIC - 2024 >

Part of the purchase price is paid only if the business hits certain profit targets after you take over. 6. The Transition Plan

Does it rely entirely on the owner's personal relationships? If so, the value may disappear when they leave.

Before spending thousands on legal fees, ask the "Three Whys": buying into an existing business

Before looking at listings, decide what kind of "buy-in" you are doing:

Businesses are usually valued as a multiple of or EBITDA . Part of the purchase price is paid only

Check for outstanding liens, employee contracts, and pending litigation.

(Retirement and health are good; "the industry is dying" or "lawsuit pending" are red flags.) buying into an existing business

Does one customer represent more than 20% of the revenue? 5. Valuation and Financing