There are many complexities in buying a business.  Purchasers of businesses may vary from sophisticated larger companies who purchase several businesses in a year to buyers purchasing their first business. Many of the principals of purchasing a business are the same regardless of your size.  The main key is to determine what the business value is to YOU.

You are investing a large sum of money and you will expect the business to give you a reasonable return.  The typical process for purchasing a business is: 

• Review your existing business and or general background.
• Identify potential companies to be acquired
• Contact potential companies
• Gather financial and operation information from interested companies
• Create a financial model compatible with your financial structure
• Meet with your bank to present the financial plan and obtain financing
• Assist in formulating an offer
• Work with your attorney to help draft a letter of intent
• Create a due diligence check list for items that will need in due diligence
• Participate in due diligence
• Work with attorney in reviewing purchase documents
• Assist in transitioning ownership of the business to you

It is important to note that Cetane's consulting does not end after the business is purchased.  Many times the process of the transition is the most important part of the transaction.  It's not always what you purchase that is as important as what your end up keeping from what you purchase.  This is particularly important in businesses that pay for intangible assets such as customer lists, trademarks and good will.

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