Due Diligence

May 22, 2019

Due Diligence In Acquiring A Franchise

In this era in which our economy is dominated by large business concerns having the ability to realize profits through potent marketing, high volume sales and low margins, one of the most effective ways for the individual small entrepreneur to fulfill his or her dream of owning a business is to acquire a franchise. Franchises often provide the benefit of instant name recognition, national advertising, cooperative purchasing arrangements, effective training, site location and ongoing operating assistance. Indeed, lenders are often more willing to make start-up business loans to franchisees of well-known franchises than to those who propose to operate similar businesses without the benefit of a well-known franchise. Nevertheless, the acquisition of a franchise usually involves a substantial investment and […]
April 10, 2019

The Importance of Due Diligence

Buying a business involves a lot of twists and turns, but no part of the process is more important than completing due diligence. Due Diligence—An Overview  Due diligence is the process of evaluating a business from all aspects before making a purchase decision. It’s often performed when buying a business but there are many other situations in which due diligence might be necessary as well. It’s a big factor in private equity funding through venture capitalists and it’s part of the purchase of real estate, particularly in checking the legal history of the property. Due diligence is not a general investigation. It includes specific elements that can vary based on the situation and the nature of the business. Due diligence protects both parties […]
March 26, 2019

5 Legal Questions to Ask When Purchasing a Business

Purchasing a business can be a daunting task, rigged with legal pitfalls. It may seem like a clear-cut deal but as a buyer, you need to be aware of external factors that are attached to purchasing a business. Issues span across legality and interconnect with the business’s operation, financials, taxes, licences, and employment. Here are five questions you need to ask yourself before you purchase a business. 1. Have you performed due diligence? Prior to purchasing a business, it is imperative that you conduct due diligence of what you are buying. Due diligence refers to a comprehensive review of a business prior to its purchase. This includes analysing the businesses’ liabilities, assets, transactions and potential commercial value. It is recommended […]
February 12, 2019

Due Diligence In Business Sale

Every business sale goes through a process of due diligence. This is when the potential buyer delves into the details of the business’ finances and operations to gain a greater understanding of the reality of the business. And, to reduce risks associated with the purchase. This can be a grueling process. Both parties must be prepared for the level of scrutiny involved. As a seller, the best way to prepare for the due diligence process is to make sure all the information you provide is accurate and complete. Avoid any manipulations or gamesmanship that skews the data. Misleading information will be uncovered during the due diligence process. This will only slow the negotiations and could lead to an antagonistic relationship […]