Buying a Business in Indiana
You need to do a significant amount of homework prior to buying a business. A skilled business attorney can help you avoid many of the legal pitfalls and smooth the way toward a less worrisome purchase. Once you have a business you believe is right for you to purchase, steps you can take to avoid problems down the road include the following:
Examine your finances. Buying a business is an expensive proposition. You need to determine whether you can afford to buy the business that interests you, and you also must find out if it generates enough profit to allow you to live comfortably.
Inspect the operation. It is extremely important that you make some site visits and that you observe the operation at different times and on different days. Ask yourself if there are any things that you do not like.
Make an initial assessment. Examine information on price, income, and cash flow. Look at revenues and expenses and figure out how much you can invest and what your carrying costs for debt might be.
Make an offer. If you feel comfortable with the above, you may wish to make an offer that is contingent upon the verification of information you relied upon in making the offer. You may enter into a Letter of Intent that shows your interest to buy and takes the property off the market while you perform your due diligence.
Perform due diligence. Once price and major terms are settled, you need to conduct due diligence by examining the following:
- Financial statements and tax returns
- Customer lists
- Key contracts
- Employment agreements
- Confidentiality agreements
- Minutes of the board of directors and shareholders
- Corporate charter and bylaws
- Current litigation-related documents
- Patents, copyrights, and other intellectual property-related documents
- Licenses and permits of the business
Our business law firm can provide the type of help you need
The business firm in Indianapolis of Ammeen & Associates, P.C. is available to assist you with all your business law needs. Whether it is business transactions including the drafting of contracts, help with a business dispute, litigation, or business formation, we are waiting for your call. Contact the skilled Indianapolis business attorneys at Ammeen & Associates, P.C. today at 317-423-7505 or contact us online for all your business needs. We are conveniently located at 155 East Market Street, Indianapolis, Indiana, 46204.
