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Buying a Business For Dummies
book

Buying a Business For Dummies

by Eric Tyson, Jim Schell
April 2024
Beginner content levelBeginner
304 pages
6h 58m
English
For Dummies
Audiobook available
Content preview from Buying a Business For Dummies

Chapter 8

Preparing a Purchase Offer

IN THIS CHAPTER

Bullet Creating a Letter of Intent (LOI)

Bullet Crafting a purchase offer with contingencies and price allocations

Bullet Exercising due diligence

Once you’ve honed in on a desirable business and done some analysis and consultation of experts to determine its approximate value (see Chapter 6), and figured your financing options (see Chapter 7), the next step is to put together a purchase offer. If you’ve bought a house or other real estate before or attempted to make such a purchase, then you’re pretty familiar with many of the elements we’re going to discuss in this chapter.

Buying a business is generally much more complicated and involved than buying a home, so the process typically starts with an expression of interest and general parameters (Indication of Interest) followed by the outlines and more details of an offer in a Letter of Intent. In addition to explaining these in detail in this chapter, we also discuss the typical contingencies your offer should include and what due diligence you should perform before closing on your deal.

Writing a Letter of Intent or an Indication of Interest (IOI)

Usually many months into the process of looking ...

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Publisher Resources

ISBN: 9781394245758Purchase Link