Buying an existing business with an established cash flow and products and with an established customer/client base is often preferable to a new start up.

The due diligence process is important in the lead up to purchasing a business, be it shares or assets. Although most issues can be resolved if a proper purchase and sale agreement has been negotiated, it is preferable for a potential business owner to know any issues with the current business. Problems can range from additional security on materials or inventory to a written promise to sell shares to another potential buyer. A multitude of issues can be discovered if a proper due diligence process is undertaken as early as possible. This can help you avoid buying more than what you bargained for or give you peace of mind about your decision to purchase.

Legal advice is recommended for all steps of a business transaction.