Wednesday, June 04, 2008

How to Prepare a Purchase Offer for a Business

How to Prepare a Purchase Offer for a Business

By eHow Business Editor

f you intend to make a serious offer to buy an existing business, it is always best to lay out all the details in a letter to the seller.

Things You’ll Need:

  • Attorney Referral Services
  • Business Services
  • Bonded Paper
  • Envelopes
State what you intend to buy - inventory, business name, equipment.
Detail the amount you will pay and any payment terms.
Include a noncompete clause, which forbids the seller from opening up a competing business in your locale within a given time frame.
Clearly spell out what information you still need in order to complete the transaction. Do you want to review the business's tax returns? Do you want proof that certain licenses and permits will be transferable? Do you need a copy of the property's lease agreement?
Be sure to mention that this is a good-faith offer that will be consummated within a given time period should both buying and selling parties agree.
Note at the end of the letter that this is not a binding agreement and awaits further review.

Tips & Warnings

  • Give the seller a modest deposit along with the purchase offer to show that you are serious about buying the business.
  • Have your lawyer go through your offer with a fine-tooth comb before you finalize the deal.

No comments: