Create Your Dream Team
In addition to having our support from day one, once you’ve presented a Letter of Intent (LOI) for the chosen business, it’s crucial to assemble a team of professionals to assist you through the next steps, especially during the due diligence process. Here’s what you need to consider:
Choose a Business Attorney/Escrow Agent
Selecting the right attorney is vital for navigating the legal aspects of your business acquisition. Look for an attorney experienced in business transactions who can guide you through the complexities of contracts, negotiations, and compliance issues. An escrow agent will help manage the funds and ensure a smooth transaction, providing peace of mind for both you and the seller.
Deposit Money into Escrow (Approximately 10%)
Once you’ve selected your attorney and escrow agent, you’ll need to deposit a percentage of the purchase price into an escrow account. This amount is typically around 10% and demonstrates your serious intent to purchase the business while protecting both parties throughout the transaction.
Hire an Accountant
Engaging a qualified accountant is essential for reviewing the financial health of the business. They can assist in analyzing financial statements, assessing tax implications, and ensuring that the business’s finances align with your expectations. A good accountant will provide valuable insights that will help you make informed decisions.
Conduct Legal and Accounting Due Diligence
With your team in place, it’s time to conduct thorough due diligence. This process involves reviewing all aspects of the business, including legal documents, financial records, contracts, and operational procedures. Ensuring everything is in order will help you identify any potential risks and confirm that the business is a sound investment.