Working with a business broker that represents buyers in a business sale, or merger, is the best possible option. These professionals can complete due diligence on any business you may be considering, ensure the business for sale has no hidden surprises.
In Minneapolis, Minnesota, there are a handful to top quality business brokerages to work with. Keep in mind that those with a national or international presence are going to work with more sellers, giving you access to more options in a business for sale that meets your specific interest.
Full Financial Disclosure
If your business for sale has just gone on the market, you will sign a confidentiality agreement before having access to the complete financial information from the seller. The business advisor will be able to work with you to understand the documents, review the profit and loss statement and to through at least three years of financial statements for the company.
The broker, with his or her experience, will be able to spot potential issues for consideration within these financial documents. You may also want to have an accountant review the information.
Current Location and Lease Terms
If you are considering a business for sale with a lease on their current property, it will be essential to review the lease carefully and to understand all terms and conditions. In some lease agreements, the sale of the business may result in the renegotiation of the lease, which could potentially make the terms of the lease change for the new owner.
Business Legal Status
Buying the assets of the business without buying the actual business entity is the simple option with a business for sale. However, in many cases, buying the business entity will be the option that is most effective for the future of the company.
When this happens, it will be critical to understand how the business was set up and any agreements or other documents that may impact the sale of the business in its entirety. Depending on the type of business it will also be important to verify all necessary licensing goes with the sale and that the licenses can be transferred.
Additionally, it will be important to ensure there are no ongoing or pending lawsuits against the Minneapolis company. This can be challenging to determine and there are specific clauses that can be put into the sales agreement to provide protection. A top brokerage firm will ensure these issues are addressed and the necessary protection for the buyer is put in writing and agreed upon in the terms of the sale.
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