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Business Sales & Acquisitions

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  • Home
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Business Sales & Acquisitions
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Buyer FAQ

Top Questions to Ask When Buying a Business

There are many things to consider when buying a business. Once you’ve found what appears to be the right opportunity, you’ll need to dig deeper and perform due diligence to determine its long-term viability. It’s also important to learn about the buying process so you’ll know what to expect and how to prepare. 

With more than 30 years of experience helping our clients buy and sell privately held companies, Inbar Group, Inc. can provide valuable insight into the buying process. Review the answers to these questions to ask when buying a business. 

Is Buying a Business a Good Idea?

Buying an existing business instead of starting one from scratch can be the right move for several reasons. It will generate an immediate cash flow and provide faster profits because you don’t have to wait until the entity is established. In many cases, you’ll have a proven business model to follow, which can reduce the mistakes many startup operations make.

What Will This Cost Me?

The cost to purchase an existing business varies widely, depending on the size, industry, profitability and other factors. Unless you’re already independently wealthy, you’ll need to finance the transaction. Other than bank and small business loans, sellers may be willing to help. Remember that everything is negotiable, including the seller’s asking price and terms, enabling you to strike a more favorable and affordable deal. 

Why Are They Selling the Business?

Knowing why the seller no longer wants the business is important for several reasons. An owner motivated to sell quickly could indicate problems you will inherit and need to overcome. Conversely, a longtime owner who is selling the business and retiring could present you with a golden opportunity. 

How Has the Company Been Valued in the Past?

Previous valuations can help you understand a business’s financial history and what to expect regarding earnings, consistency and trends. This information can assist in predicting future performance and strengthening your negotiating position.

What Does the Competition Look Like?

Every business has competition. Knowing the competitive landscape for your industry within your operating territory can help you determine how difficult or easy it will be to run a profitable operation. You may need to find ways to differentiate your business and make it stand out. 

Do You Need Any Permits or Licenses to Run the Business?

Depending on your business’s location, you may need to obtain building permits, get professional licenses or meet other legal or regulatory requirements to operate your business, especially if you are constructing or renovating a structure. These processes can be time-consuming and expensive, so you’ll have to know what to expect before you buy. 

Where Can I Find Businesses That Are Available to Purchase?

If you’re in the market for an existing business, Inbar Group is an excellent resource. We offer extensive listings of businesses for sale in multiple industries, providing access to numerous lucrative opportunities. If you have more questions to ask before buying a business, trust us to have the right answers. 

Contact us or review our blog posts for additional information today.

If you have more questions to ask a broker when buying a business, trust Inbar Group to guide you through the process and help you evaluate opportunities with confidence.

Learn More About Selling With Inbar
Buyer FAQ
Do I need an attorney?

It may be advisable to have an attorney review the legal documents. It is important, however, that the attorney you hire is familiar with the business buying...

Continue Reading
January 10, 2012

Buyer FAQ
Why should I go to a business broker?

A professional business broker can be helpful in many ways. They can provide you with a selection of different and, in many cases, unique businesses, including many...

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January 10, 2012

Buyer FAQ
What happens when I find a business I want to buy?

When you find a business, the business broker will be able to answer many of your questions immediately or will research them for you. Once you get your preliminary...

Continue Reading
January 10, 2012

Buyer FAQ
What does it take to be successful?

Certainly, you need adequate capital to buy the business and to make the improvements you want, along with maintaining some reserves in case things start off...

Continue Reading
January 10, 2012

Buyer FAQ
What should I Look for?

Obviously, you want to consider only those businesses that you would feel comfortable owning and operating. “Pride of Ownership” is an important...

Continue Reading
January 10, 2012

Buyer FAQ
How are businesses priced?

Generally, at the outset, a prospective seller will ask the business broker what he or she thinks the business will sell for. The business broker usually explains...

Continue Reading
January 10, 2012

Buyer FAQ
What is the real reason people go into business for themselves?

There have been many surveys taken in an attempt to answer this question. Most surveys reveal the same responses, in almost the same identical order of priority....

Continue Reading
January 10, 2012

Buyer FAQ
Why should I buy a business rather than start one?

An existing business has a track record. The failure rate in small business is largely in the start-up phase. The existing business has demonstrated that there is a...

Continue Reading
January 10, 2012

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Page 3 of 3

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INBAR GROUP, INC.
Business Sales & Acquisitions
info@inbargroup.com

Main Office

Administration and Mail
209 West 29th Street
Suite 318
New York, NY 10001
Phone: 212-473-5000

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West Hartford, CT 06107
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Maine Office

12 Shuman Ave., #10
Augusta, ME 04330
Phone: 207-352-1000

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Dedham, MA 02026
Phone: 617-934-8000

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2 University Plaza, #100
Hackensack, NJ 07601
Phone: 201-474-3000

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Pittsburgh, PA 15222
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Pennsylvania Office - Philadelphia

Two Liberty Place
50 South 16th Street
17th floor
Philadelphia, PA 19102
Phone: 215-388-2334

Washington DC Office

650 Massachusetts Ave NW
Suite # 600
Washington DC 20001 Phone: 202-516-7800
Inbar Group Inc. Logo with White and Red Letters

INBAR GROUP, INC.
Business Sales & Acquisitions
info@inbargroup.com

Main Office

Administration and Mail
209 West 29th Street
Suite 318
New York, NY 10001
Office: (212) 473-5000

Washington DC Office

650 Massachusetts Ave NW
Suite #600
Washington DC 20001
Office: (202) 516-7800

Pennsylvania Office - Philadelphia

Two Liberty Place
50 South 16th Street #1700
Philadelphia, PA 19102
Office: (215) 388-2334

New York Office

1411 Broadway
16th Floor
New York, NY 10018
Office: (212) 473-5000

New Jersey Office

2 University Plaza
Suite #100
Hackensack, NJ 07601
Office: (201) 474-3000

Connecticut Office

177 West Putnam Ave
Ste 12609
Greenwich, CT 06831
Office: (203) 388-5202

Pennsylvania Office - Pittsburgh

1001 Liberty Ave
5th Floor
Pittsburgh, PA 15222
Office: (215) 461-5000

Maine Office

12 Shuman Ave
Suite #10
Augusta, ME 04330
Office: (207) 352-1000

Massachusetts Office

770 Legacy Place
Dedham, MA 02026
Office: (617) 934-8000

Certified M&A Professional

2023 M&A Source Platinum Club
2022 International Business Brokers Association Platinum Chairman's Circle Award to Jay Inbar
2022 International Business Brokers Association Deal Maker Award to Jay Inbar

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  • Home
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    • New York City
      • New York
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