If you are considering buying a retail business, the Christmas shopping season is a good time to do an on-site evaluation of apparent business volume. If the business ought to be busy but isn’t, consider it a signal that either the business is not serving its market, or that no viable market exists. On the other hand, if the business is very busy, it could be a good sign. Many retail businesses survive year-round from the revenue generated in the holiday shopping season.
Before making an offer to purchase the business or signing a contract, conduct a thorough historical review. A smart investor will review a business’s audited financial statements, tax returns, customer base, existing employees, ongoing contracts, policies, and practices.
If the business appears to be a wise investment, consider your options for purchase before settling on one. Depending on the nature of the business and the type of business entity, you may be able to acquire the business through an asset purchase, stock purchase, or merger. Additional options may be suggested during negotiations with the current owners.
For more information about acquiring an existing business or help negotiating the terms of your acquisition, contact the attorneys at the Scolieri-Beam Law Group, P.C. Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can take care of the details for you every step of the way. Contact us today at (412) 765-0546 or via email at info@scolierilaw.com.