If you do not want to face the risks involved in building a company from scratch, buying an existing business in Florida may be the most suitable option for your case. In this article, you will discover the essentials involved in Florida’s business acquisition process.
Florida Business Acquisition Process – Key Elements
Searching for a Business Opportunity
The first step to purchasing an existing Florida business is to search for available offers. When searching for companies for sale, you should consult with an expert attorney to decide exactly which type of company you want to buy. An experienced legal counselor will help you to:
- Establish the search criteria
- Search for potential targets
- Filter down the best purchase opportunities
- Define the criteria for acquisition
- Plan an acquisition strategy
- Perform a detailed analysis of the company
Filtering and Reviewing Purchase Opportunities
After narrowing down the number of offers, it is time to choose a company to purchase. It is crucial to review the details of the business and evaluate whether it meets the acquisition criteria. When selecting the best opportunity, you must identify:
- Does the business interest you?
- Whether that business meets your long-term goals
- Whether that business purchase will be worth the resources invested in it
- Whether that business has the potential to grow in the future
- Is that business sufficiently profitable?
Handling the Negotiation Process
Once you have decided which business you want to purchase, it is time to meet with the seller. Depending on the circumstances, several meetings will occur before an offer is placed.
If possible, you should perform a business tour to look at the company’s premises. Before placing an offer, you must consult with an expert business attorney to structure the offer and use advanced negotiation skills to protect your interests.
The negotiation process is crucial to determine which terms will be part of the purchase agreement, such as the assignment of existing business contracts, restrictive covenants, and the payment terms.
In most cases, the initial offer will not be accepted. After some back and forth negotiations, you may reach an agreement mutually beneficial for all parties involved.
Before signing the documents to close the transaction, you must perform due diligence to verify the accuracy of the information about the business provided by the seller. You must work with a business attorney to identify:
- The company’s profitability
- The physical condition of the company’s premises, equipment, and other physical aspects
- The balance of the company’s tangible and intangible assets
- Whether the company has pending litigations
- Whether the company has outstanding debts
- Whether the company has an adequate business location
- Potential growth opportunities
- The level of competition faced by the company
- The company’s suitability to your goals and skills
Closing the Transaction
After due diligence is complete, you have a final opportunity to decline the offer and look for other business opportunities. Otherwise, you must proceed with the necessary steps to close the transaction. An experienced business purchase attorney will ensure a smooth closing by:
- Preparing and handling the necessary documentation
- Ensuring both parties meet the deadlines
- Protecting the buyer’s deposit in an escrow account
- Negotiating final adjustments to the transaction
- Clarifying any outstanding doubts
- Ensure full legal compliance throughout the process