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Before Buying a Business

Posted by: Rod Kurtz on April 6, 2006

When contemplating purchasing a business, you have some major issues to sort through, including:

Type of Deal. What kind of deal will it be — purchasing the assets of the business or purchasing the stock?

Confidentiality. If the seller will be sharing confidential information, such as financial statements and customer lists, the buyer probably will be asked to sign a Confidentiality Agreement.

Letters of Intent. Consider whether signing a letter of intent makes sense before you invest a great deal of time and money.

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