Thinking about buying a business in Texas?

If you are buying an existing business, work with professionals and protect yourself from business risk and deal disputes with these 5 steps:

1. Learn About the Business: First, you should find out as much as you can about the business you want to buy. Check out what people are saying about it on Google and Glassdoor. Also, look into public records to see who owned it before, what licenses it has, and if it follows all the rules in its location. Make sure it’s known for doing things right. Most importantly, figure out why the current owners want to sell it. Is it because they’re retiring, or is there a problem with the business?

2. Investigate the Business: After you talk to the current owner, you get a chance to check everything about the business. You can visit the place and look at everything inside, like the stuff they have and the money they make. You’ll also need to look at the business’s finances to make sure it’s doing well and doesn’t owe a lot of money. You might need to sign a paper that says you won’t tell anyone the secrets you learn.

3. Sort Out Your Money: Think about how you’re going to pay for the business. You can either pay with your own money or borrow some from a bank or other places. It’s a good idea to get approval for the money you need ahead of time. Knowing how much you can spend helps in negotiations. You should also talk to a lawyer about what kind of business you want to run and how to protect your personal money.

4. Start Negotiating: When you’re really interested in buying the business, you’ll sign something called a “letter of intent.” It’s not a promise to buy, but it starts the conversation. This makes it easier to buy and change ownership later.

5. Make an Agreement: The most important step is the “purchase and sale agreement.” It’s like a big contract that says exactly what you’re buying and for how much. You should list all the things that come with the business, like furniture, supplies, and any special rights. It also says how and when you’ll pay for it. Sometimes, if you and the seller don’t agree on the business’s value, you can include a way to decide it later. Before you buy the business, make sure you have a list of everything you’re getting.

P.S. Don’t Forget About the Non-Compete Agreement: To protect your new business, you should have an agreement that says the old owner won’t start a similar business nearby. This keeps them from becoming your competition, especially if they have some secret knowledge about the business. Contact one of our attorney’s at Dike Law Group and schedule a meeting so we can discuss at dorismeet.com.