Buying and selling are two of the most common terms in business. If you’re buying or selling a business, you might be curious as to what some of the items are during this transfer period of ownership. These are the items we’ll be covering today to help you obtain a better understanding.
Vehicles, Furniture, and Inventory
Some of the items that a business might use to operate daily will be included in the sale. This can vary based on the type [e of operation you’re acquiring. For instance, if you’re purchasing a manufacturing company, you’ll usually be allowed to buy various vehicles and equipment. They’re sometimes included with the sale, but sometimes, the seller will ask for additional costs for you to acquire them.
Real Estate
This is a topic that many first-time buyers inquire about the most. When you’re purchasing any business, this doesn’t necessarily mean you’re also acquiring the physical location. When looking at a company to buy, you must inquire whether they own the property outright or they’re leasing or renting the space from which they’re operating.
Debt
Most of the time, any debts that the seller of the business has acquired over time are their responsibility to take care of. There are exceptions to this, such as long-term debts and stocks. One of the best things to do during the buying process is to ask for access to any financial records that the present owner has in their possession.
Future Profits
This is another matter that varies depending on the type of business you’re buying. Some companies will hold on to stocks that generate dividends and profits after the sale is finalized. For the most part, any future profits the business makes go directly to the seller.
Patents and Trademarks
If you’ve ever been involved in franchising, you’re undoubtedly familiar with the agreements to use patents, trademarks, and intellectual property. However, when buying a business from the original owner, you obtain ownership of it. An exception to this might be something still in development and not trademarked or patented yet. These will be addressed at the time of purchase.
Buying or selling a business can seem complicated, and that’s where Hallmark Business Brokers comes in. We’ve helped hundreds of people through this process and are here to answer any questions you might have. Get started with us today by calling 941-445-4726 or filling out the form on this page.