After completing the due diligence process, a buyer will have enough information to make a final decision upon closing the transaction. The Letter of Intent will have laid out the basic process for closing the purchase or sale of the business, but what exactly is involved in closing the transaction? As lawyer's often state, it depends. ...
Monthly Archives: October 2009
Tweet-Links
I’ve decide to try something a little different. Instead of the Morning Links series I had started a while back, I’m going to post my tweet-links from the previous week. I’ve been spending more time on Twitter where you can follow me @David_B_Willis. I usually spend a little time each day reading articles that might be of interest to SBO’s and I tweet the ones I think are of particular interest.
Buying a Business in Texas Step #2: Due Diligence
For anyone making a significant investment in a business, the due diligence process is key. This allows the buyer to thoroughly evaluate the company and make sure that he or she has a clear picture of the business. The goal is to make sure that after the buyer takes ownership he or she is not presented with any surprises that had the buyer known before, would have affected the valuation of the business or even the very decision to purchase it.
Buying a Business in Texas Step #1: The Letter of Intent
Before you can begin the process of purchasing a business one side of the transaction or another will likely seek to have the purchaser issue a Letter of Intent(LOI). The Letter of Intent commonly contains the following terms: a statement of the purchaser’s interest in the business; a statement of the seller’s intent to sell the business; the basic terms and method of the transaction; an exclusivity clause; a confidentiality clause; and a closing date.
Buying a Business in Texas
Purchasing a small business can be easy, straight forward, and simple; or it can become extremely complex. Each situation is different but I’m going to attempt to describe the basic process. In more informal purchases some of these steps might be skipped. In more formal purchases there might be other steps added to the process. But this series of posts should give you a basic idea.
Monthly Archives: October 2009
Tweet-Links
I’ve decide to try something a little different. Instead of the Morning Links series I had started a while back, I’m going to post my tweet-links from the previous week. I’ve been spending more time on Twitter where you can follow me @David_B_Willis. I usually spend a little time each day reading articles that might be of interest to SBO’s and I tweet the ones I think are of particular interest.
Buying a Business in Texas Step #2: Due Diligence
For anyone making a significant investment in a business, the due diligence process is key. This allows the buyer to thoroughly evaluate the company and make sure that he or she has a clear picture of the business. The goal is to make sure that after the buyer takes ownership he or she is not presented with any surprises that had the buyer known before, would have affected the valuation of the business or even the very decision to purchase it.
Buying a Business in Texas Step #1: The Letter of Intent
Before you can begin the process of purchasing a business one side of the transaction or another will likely seek to have the purchaser issue a Letter of Intent(LOI). The Letter of Intent commonly contains the following terms: a statement of the purchaser’s interest in the business; a statement of the seller’s intent to sell the business; the basic terms and method of the transaction; an exclusivity clause; a confidentiality clause; and a closing date.
Buying a Business in Texas
Purchasing a small business can be easy, straight forward, and simple; or it can become extremely complex. Each situation is different but I’m going to attempt to describe the basic process. In more informal purchases some of these steps might be skipped. In more formal purchases there might be other steps added to the process. But this series of posts should give you a basic idea.