Here at Carpenter & Lewis PLLS, we understand that you may need help to buy an existing business. That’s okay. It can be pretty complicated, especially if you are attempting to merge your business with the existing one. This is called a merger & acquisition purchase and is not for everyone. With Carpenter & Lewis PLLC’s experience, we’ll help you decide whether starting from scratch or growing your existing business would be better than buying a new business—or whether you should buy the new business separately, and not merge it with your old one.
The benefits to buying a new business that has existed for a while that are immediately noticeable are: well, the fact it’s an already formed business, that’s registered with the state and structured, has a physical or online presence, an established customer base and staff that work for it already. It can save you a lot of time and hassle in some ways.
These essential business components can make or break a business, and can save you, the buyer, money and energy. And not to mention, purchasing an existing business is not as risky as starting a new business from the ground up due to the established customer base and audience.
Existing businesses typically have verified customers, professional contacts, financial history, and all of those things can make securing new funding easier (like business loans!) and the existing business is often cash-positive, so funding that you may require would be lower than a business you started from the ground up recently.
Reach out to a business purchase lawyer in Knoxville, TN today to discuss the particulars involved in buying a particular business. A business lawyer at Carpenter & Lewis PLLC has the experience and knowledge to talk to you about business plans, how you plan to grow your business, how much money you’d need to purchase the business, what you’d need to cover expenses like payroll and utilities, and much more.
If you are seeking to work with a lawyer with a specific background, just ask and we’ll happily inform you of your education, any awards, honors and certifications that we hold.
A lawyer is also going to have a list of questions that you should ask prior to purchasing a new business, because it can be important to the businesses financial future and your own.
Some of those questions are:
What does the business’s future look like? (Both in financial terms and its industry). What is the business’s current financial status? Is it declining or rising, why?
Does the business have any outstanding debts? These debts may transfer to you so knowing about this will help you decide on your purchase.
Has the company changed at all since it was founded? If so, how, and why did it change?
Does the business own any intellectual property? If so, do ownership rights need to be transferred to the new business owner?
What contracts (if any) is the business currently involved in?
Are there any pending lawsuits against the business or its owners?