Purchasing A Small Business

Financial Management for the Small Business
I. Deciding to buy
A. Why buy a small business?
B. Starting out-the nine steps
C. Initial details to consider
1. Are partners needed?
2. Economic factors
3. Is the location acceptable?
4. Tax strategy
II. Where to start
A. How much income is needed?
B. The "Thirteen Steps" to acquiring a business
III. Locating a potential purchase
A. The Acquisition Plan
B. Beginning the search-who can help?
III. Negotiating a purchase price
A. Valuation of a small business
1. Why do a valuation?
2. Choosing the method that is best for your situation
3. Some different methods of valuing a business
a. Ability-To-Pay Method

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decision is made. First of all, exactly what do you want to accomplish? To make millions of dollars, right? Or is it to have the freedom of being your own boss? Whatever the reason, you must be sure that it is something that you are ready to devote an exorbitant amount of time and energy into and that it is something that you really want. Otherwise, you might be stuck doing something that you hate. If you are ready to commit then you must ask yourself just how far will that commitment extend. How much of your own time, energy, and money are you willing to sacrifice?
After the decision is made, the acquisition of a small business can be summed-up into nine steps, in which most will be elaborated upon later. "These are the nine steps to any business acquisition, regardless of its size or industry:
1. The search, locating a business available for sale.
2. Identifying alternative candidates.
3. Valuing the business.
4. Negotiating a price and terms.
5. Investigating the ...

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of the deal and probable success in managing the business after closing…There's no sense spending time, effort, and money on a target located in the wrong place." (Tuller, 12) Along with this, the personal strife of having to travel a great distance to get to work can be very frustrating. So, be sure that the location of your potential business is profitable in every way.
One the greatest minds of the 20th century, Albert Einstein, once said, "tax is the most difficult thing in the world to understand". Unfortunately, with the ever-changing laws, that problem gets worse every year. This means that you should have knowledge of the current tax laws. "'You will have a unique ...

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Purchasing A Small Business. (2005, December 4). Retrieved February 23, 2019, from http://www.essayworld.com/essays/Purchasing-A-Small-Business/37467
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"Purchasing A Small Business." Essayworld.com. December 4, 2005. Accessed February 23, 2019. http://www.essayworld.com/essays/Purchasing-A-Small-Business/37467.
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Added: 12/4/2005 09:54:36 AM
Category: Miscellaneous
Type: Premium Paper
Words: 2791
Pages: 11

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