Importance of Being Informed
Buying an existing business or franchise or merging your business with another is a path followed by many business people. Unfortunately, many pit falls exist that can trap the unwary. Whether there was fuzzy math in the accounting, declining sales, real estate or environmental issues, or simply over-leveraging a brilliant idea, many businesses succumb to these pitfalls simply because they were not properly informed about these potential issues before signing on the dotted line.
The process of buying a business, investing in a franchise, or merging with another company follows a predictable path, which we have been down with numerous businesses many times before. Involving an experienced business attorney early on in the process can help expose these pit falls and ensure that your investment in others does not become unexpected charity work.
Setting Yourself Up for Success
Existing businesses have predictable sales and growth patterns that should be measured and costs of continuing or merging the business that must be analyzed. Golden handcuffs can be used to make sure that seller continues to support the business and helps with the transition. Non-competition agreements should always be used to ensure that you are not funding your competition. Numerous other tools are available, which can be tailored to bolster the positives and minimize the negatives of a purchase or merger.
Franchises have comparables that can be examined and demographics to be studied to ensure that the market will support the Franchise. Many franchises are successful in some markets and fail miserably in others. Some franchisers are invested in your success, while others are just chasing the next best thing. The best thing to do is to talk to as many current and past franchisees as you can. Learn what keeps them up at night, and make sure that you negotiate with the franchiser to minimize these issues.
Free Initial Consultations
Please call or email us today to schedule a free initial consultation where we can give you further insight into your project and help you along the path to success. We have helped many businesses modify their efforts at this very early stage to help save them thousands of dollars in costs and countless hours of wasted effort.