Fast Food? Manufacturing? How about distribution? Small mom and pop shop or publicly held corporate spin-off? Choosing a business to acquire is a lot like car buying—lots of models, lots of colors and a litany of price ranges. Fortunately there are some questions you can ask to narrow down the choices.
We’ve all heard the catch phrase, “you get what you negotiate.” As it relates to buying a business, the same philosophy holds true. Perhaps “you get what you want to negotiate” is closer to reality. I’ll explain. The first issue to address is what form of an offer to make, stock purchase or an asset purchase. A stock purchase is an acquisition of the corporate stock from a corporation. An asset purchase is an acquisition of assets and other portions of a company’s balance sheet.