Define what you are buying
An independent business and a franchise can involve different rights and obligations. The SBA’s business-planning guide distinguishes buying a business from franchising and encourages examining the opportunity carefully. Start by clarifying the legal structure and what is included in the transaction.
Make an information list
Financial statements, contracts, operating processes, customer relationships and ongoing obligations can all inform a due-diligence conversation. Ask your professional team which documents are needed for the particular business rather than assuming a generic checklist is sufficient.
Connect the purchase to the operating plan
Write down your intended role, what you expect to change and the questions you have about financing and working capital. The asking price is not a complete operating plan. Use this preparation to support a discussion with qualified transaction, tax, legal and financial professionals.
Bring these questions.
- What rights, assets and obligations would transfer?
- Which information needs independent verification?
- What resources will the business need after closing?
Sources & further reading
Primary sources provide context for this guide. They do not endorse The Wealth Channel.
General education only. Not personalized investment, tax or legal advice. The right professional and next step depend on your circumstances.