The SBA states that, “for some entrepreneurs, buying an existing business represents less of a risk than starting a new business from scratch.”
While the opportunity may be less risky in some aspects, performing due diligence is an essential step to understanding if there are any hidden liabilities to the business purchase in question. It also gives the buyer a greater awareness of what it is they are actually buying.

In this course we begin by asking whether or not buying an existing business matches the potential buyer’s skills or interests.

We then discuss the benefits to purchasing an existing business and the possible downsides to buying an existing business. We discuss hidden problems associated with the ability to obtain all licenses and permits, zoning requirements and environmental permits.

There are a number of different methods to determine a fair and equitable price for the sale of the business. We recommend viewers to watch our business valuation course but cover the basics here.