1. Sellers deserve a fair price for the years they have spent developing their business. Offer a reasonable price.
2. Keep an open mind. There are no perfect businesses.
3. Keep in mind that businesses are priced on cash flow. You must earn enough from the business to live on comfortably and to pay the debt you take on to buy the business. The bank will look at your loan the same way.
4. Time is of the essence. After all parties have agreed upon price and terms it is critical to proceed quickly to closing. Don’t let the attorneys or the accountants kill what could be a profitable purchase by “over-thinking” the deal. Nothing is perfect.
5. Disclose pertinent information early and avoid surprises that will destroy your credibility with the seller.