Buying a small business

I'll sell you mine for the right price.

Thx, but no.

Why is that?

Tell us a little something? Kind of biz. Do you have to get a non compete against the current owner? Etc. Give us some background? You gonna work there or let your wife run it?

Older veterinarian retiring, wife is a vet that works for him and has been running the show mostly since starting two years ago with the intention of buying from the start. I won't work there in a paid standpoint but will be involved. We are gathering info on the steps we need to take such as hiring an attorney, cpa, forming an LLC, etc.

Have you ran a small business? If not, you might consider getting a bit of training. Non profit economic development companies offer that kind of training.

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Older veterinarian retiring, wife is a vet that works for him and has been running the show mostly since starting two years ago with the intention of buying from the start. I won't work there in a paid standpoint but will be involved. We are gathering info on the steps we need to take such as hiring an attorney, cpa, forming an LLC, etc.

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This is 101, but make sure he has a customer list written down somewhere.

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Why is that?

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Because there is always something the former owner doesn't disclose. Mostly unpaid debt that you take on as the new owner.

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Older veterinarian retiring, wife is a vet that works for him and has been running the show mostly since starting two years ago with the intention of buying from the start. I won't work there in a paid standpoint but will be involved. We are gathering info on the steps we need to take such as hiring an attorney, cpa, forming an LLC, etc.

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This is could be a very good business.

Don't let this get too complicated would be my advice. Buy the assets and location not the corporation. Let him keep the corporation and any debt or liabilities it has.

Buy the equipment for what it is worth--he may want to finance it for you.

Keep the location for the time being so you can capture his clients.

Don't pay for too much "blue sky". I would try to work the blue sky--value above assets--so that you give him a percentage of the business's billings for a little while.

Let him keep any receivables he has.

Do they have any hazardous materials that might create a cleanup problem on the land?? If so find out now. Ask for a "phase 1"envirnomental audit. There are people around Baton Rouge that do such things. If the Phase 1 turns up anything you need a phase 2.

Interview the attorney and the accountants you want to use. Ask them if they have ever done much with business sales--especially sales of professional practices. If they haven't hire someone else.

Lots of things to look at, but at the end of the day it has to work for both of you, find out what is important to each other and work from there. Try to work out a way for him to stay on in some capacity for the short term. Does he own the property? Maybe rent from him with an option to buy?

I went through a very similar deal about 13 years ago, bought a professional services business from a retiring / disabled owner, fortunately my father was a CPA and brokered a very unique deal that was able to accomplish goals of both parties. It has worked out well for both.