Options that fit the conditions you’ve searched for, should pop up.
Nice.
The point is you must find sources that can provide leads for available businesses.
Step #2: Business Analyzation - You're On Your Way To Buying An Existing LLC
Good for you! You’ve found a business available for purchase.
Now, you must look into the business to make sure it is actually worth purchasing.
The best thing you could is, ask the business’s representative for access to the books and records of the business.
Ideally, you must be able to analyze anything connected to the operations or finances of the business.
With this, you will have a good picture of what the business is really all about.
The lists include (but aren’t limited to):
Ledgers
Loans
Tax returns
Leases
Employment agreements
Business licenses
The LLC operating agreement
Vendor agreement
The LLC’s articles of organization
Mortgages
Accounting books
These will tell you what assets, debts, expenses, revenues the business has.
Be sure to look at the financial trends of the business.
For example, you would want to look at the business’s balance sheet.
This will show you what the financial status is of the business you’re looking into.
It may be in your best interest to hire an attorney to look over all the legal documents with, as they can be difficult to fully comprehend.
An attorney will aid you in whether or not you should purchase the LLC.
Step #3: Negotiations - For Purchasing An Existing LLC
So you realize that there is what to talk about when it comes to this specific limited liability company that you’ve been looking into.
It is a good business.
At this point you may want to hire an CPA that will be able to evaluate the fair market value of the LLC.
Whether you’ve decided to only buy the assets of the company or the entire company, you will have a clearer picture of what to aim at in terms of prices.
You will now start discussing prices with the owner of the limited liability company.
Make sure you do CLEAR research as to what the CORRECT market value is for the business.
Step #4: Acquisition Of The Company - The Final Step
Congratulations!
You’ve come to an agreement with the company’s owner.
The time has come for you to put in writing and exchange funds.
At this point both you (the buyer) and the company’s owner (the seller) will sign a purchase agreement.
“A purchase agreement is a legal document that details everything from the transaction price to what specifically you are purchasing to what to do in the event that something goes wrong.”
You may need to sign some other documents as well.
For example, you may need to negotiate a new lease or you may want to make the seller sign a non-compete.