Long before banks are willing to loan money, often when you first have an idea, you raise money from friends and family to start your business venture. Many a long-term successful venture begins this way, with an equipment budget gifted from grandma and supplies expenses from your dad in exchange for a little ownership. Even on slightly larger scales, this is one of the most common ways businesses raise their initial capital. After all, if your friends and family won’t give you money and assistance, you’re unlikely to get it from investors you don’t know or banks that just want... READ MORE

The purchase of an existing business requires a thorough examination of all the information related to that business entity. The goal of this process, known as “due diligence,” is to provide information about the legal and financial state of the business and to reveal potential risks that could impede the future transaction. A comprehensive due diligence review typically warrants the advice of various professionals, including accountants and attorneys, who guide purchasers in the following areas: Financial status. Financial documents, including balance sheets, audited financial statements, income statements, accounts payable and receivable, and tax returns for the past three years should... READ MORE

The purchase of an existing business carries risks if key procedures are not properly executed. There are several steps to purchasing a business, including researching the type of business to purchase, deciding on the terms of the transaction and drafting legal documentation. Below is a general summary of the most important actions to be undertaken by a purchaser in acquiring a business. Determine the structure and scope of the purchase. Once the purchaser has identified the type, size and location of the business he or she wishes to purchase, the purchaser must determine what specifically is being purchased. Some business... READ MORE