Growing your business through strategic acquisition (Posted October 12, 2018)
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If you currently own a business and decide to grow by acquisition, be mindful of the cultural changes that could occur within your existing business as a result.
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If you currently own a business and decide to grow by acquisition, be mindful of the cultural changes that could occur within your existing business as a result.
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Most business owners find money and financing a mysterious, if not scary, topic. Banks have similar rules they all play by and it is wise to spend some time learning the rules of the financing game.
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For almost every rule there is an exception. In law, there are almost no absolutes. Getting competent legal assistance when buying a business is a must.
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Getting an agreeable deal with a seller - like a signed offer and acceptance - is only half the battle. Getting to the closing table is the next big hurdle. The better the plan, the
more likely it is to happen.
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While buying the business you work for has its own special challenges, many of the issues are the same whether you worked for the previous owner or not.
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Buying real estate along with a business has its own set of hidden operating costs. You need to factor in those costs as a separate center of liability.
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There are many ways to finance a business purchase but all of them will consider your character and credit history. The better the history the more the options.
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While it is more important to know how to run a business than to know the technical side of what the business does, it is important to at least have a basic understanding of it.
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When buying a business the essential questions are the same for all. But each industry can have its own quirks that you should explore.
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Financing can be one of the most challenging aspects of buying a business. There are more options than most people realize and a little education goes a long way.
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