AGREEMENT vs CONTRACTJuly 19, 2022
EMPLOYEE OWNERSHIP TRUST (EOT)August 15, 2022
Here’s some tips when you are looking for a company that is on the market
- Decide what type of business you would like to get involved in.
- Consider working with a broker. They can guide you in the right direction
- Do due diligence on the company
- Let an expert explain the financials to you. This will tell you the companies standing.
- Are there any legal liabilities?
- Get a good understanding of the business and its industry
- Get a grip of the operations procedures
- What assets come with this company?
- Look for review on the company and consider its reputation in the marketplace.
- Where is the company located.
- What fixtures, fittings and equipment does this company have and do you need to invest more money into more equipment?
- Get a proper inventory list with every item’s value
- Can this company run its operations without its current director(s)
- Is there a management team in place?
- Is there an existing customer base that will keep the business running?
- What does the cash flow look like? (Sufficient look at the competition to pay running expenses?)
- Look for competitors and how they are doing
- Future markets for this product or service
Once you are happy and you believe you have the business that you have been looking for, the next steps are:
- Getting your funding into place
- Making an offer
- Appointing a solicitor to draft your sales agreement
Some important question to ask before committing
- Why are they selling?
- What values do I bring into this business?
- How has the seller reached the price they are looking for?
- Is this company financially stable?
- Who are the competitors and how are they doing in the marketplace?
- What is the future of the industry you are about to get involved?