How to Structure Your Business Acquisition: An Insider’s Guide

How to Structure Your Business Acquisition: An Insider’s Guide

Found a business you might want to buy? Congrats! It’s exciting to consider all the potential growth and profits you could see from this business acquisition. 

But first, you’ve got to agree with the seller on how you’re going to buy this business–and that means you have to decide how to structure your acquisition deal. 

The fine points of structuring deals often get overlooked in the rush to finalize an acquisition. But deal structure gives you important options that can minimize your risk.

Buying a Business:  Who Do You Need on Your Deal Team?

Buying a Business: Who Do You Need on Your Deal Team?

When businesses change hands, each side usually has a team of experts in their corner. Both buyers and sellers are looking to protect their interests and make sure they get the best deal they can.

Who are these experts? Which ones do you need as a buyer looking to complete a business acquisition? Let’s take a look at how deal teams are assembled, and at all of the different types of deal-team members you might want to retain to help you complete your business purchase.

Many people jump into entrepreneurship by buying an existing business. You may be surprised to learn that quite often, business buyers don’t use cash to acquire a business.

If you’ve wondered, “How do I buy a business with no money?” we’ve got some ideas for you below. You can use creative financing to buy a business and realize your entrepreneurial ambitions.

To pull off a business purchase without cash, you’ll need to figure out how to fund your business acquisition. But rest assured, it can be done. If you’re short of cash, take heart–there are still plenty of ways to finance the deal and become a business owner.

Mutual NDA

Mutual NDA

A mutual non-disclosure agreement, or 2-way NDA, is a document that two parties can use to agree not to disclose confidential information to any third party. If either party releases any of the information shared, they may be liable to legal and monetary damages.

Letter of Intent (LOI)

Letter of Intent (LOI)

TABLE OF CONTENTS Letter of Intent (LOI) A letter of intent (LOI) is a document outlining the understanding between two or more parties that they intend to formalize in a legally binding agreement.  In M&A, a letter of intent is one of the first documents negotiated and exchanged between the business buyer and seller.  In…

SME Due Diligence Checklist

SME Due Diligence Checklist

Due diligence is an essential process utilized by individuals, companies and investment firms to evaluate a potential merger, acquisition, or investment. Business buyers will conduct due diligence on a target company to confirm the accuracy of the seller’s claims, mitigate risk, and garnet deeper insight into the operations – prior to committing to the deal. While the due diligence process can be extensive and time consuming, it can help prevent costly surprises later on.

Pre-LOI Due Diligence Checklist

Pre-LOI Due Diligence Checklist

TABLE OF CONTENTS What is Pre-LOI Due Diligence? Due diligence is an essential process utilized by individuals, companies and investment firms to evaluate a potential merger, acquisition, or investment.  Pre-LOI due diligence is the earliest investigative process that occurs before a letter of intent (LOI) is submitted to the seller or broker.  At this stage,…

SMB Due Diligence Checklist

SMB Due Diligence Checklist

A due diligence checklist is an organized way to analyze a company or an investment. By following a checklist, you can streamline the due diligence process and manage risk. Due diligence checklists are usually arranged in a basic format. However, they can be changed to fit different industries and business types.
This SMB Due Diligence Checklist contains some of the most common items related to evaluating a potential SMB (small and medium business) acquisition.

10 Creative Ways to Finance a Business Acquisition

10 Creative Ways to Finance a Business Acquisition

Interested in buying a business, but don’t have the cash on hand to swing the deal? That’s when savvy business buyers get creative. There are many ways to fund a business acquisition that don’t require plunking down 100 percent of the purchase price in cash on closing day.

Many people jump into entrepreneurship by buying an existing business. You may be surprised to learn that quite often, business buyers don’t use cash to acquire a business.

If you’ve wondered, “How do I buy a business with no money?” we’ve got some ideas for you below. You can use creative financing to buy a business and realize your entrepreneurial ambitions.

To pull off a business purchase without cash, you’ll need to figure out how to fund your business acquisition. But rest assured, it can be done. If you’re short of cash, take heart–there are still plenty of ways to finance the deal and become a business owner.