Buying A Business In Calgary
Business Buying in Calgary, Alberta or anywhere is both an exciting and scary proposition for many. With the many opportunities of buying a business, come many risks. Lawyers help you reduce the risks associated with purchasing this type of business opportunity. Kahane Law is here to help from start to finish. Call before you sign anything 403-225-8810.
Picking A Business To Buy
The steps of business buying are not complicated. Firstly, you must decide on what type of business you want to buy. A lawyer cannot help you with this step. You must pick what type of business you are interested in operating. Our best advice is to look at businesses in an area that you are passionate about.
Valuating The Business: How Much To Pay For The Business
Next, you must decide what you are willing to pay for the business. You can get an accountant or business valuation specialist to help. As a lawyer helping people to purchase a business, we recommend that you pay attention to certain things. For example, these include the following:
- The amount you comfortably can afford to pay;
- Final cost or out of pocket considerations. This includes inventory if applicable;
- What exactly you get for the price of the business; and lastly
- Any hidden costs that exist through the process and after the purchase.
Using a lawyer or accountant in Calgary, when buying a business in Calgary can be useful from a practical and knowledge based perspective.
Financing Your New Business
Part of buying a new business is paying for it. The simplest way to buy a business is if you have the cash or funds on hand to pay for it. Not everyone has the ability to pay cash for their new business. Most do not. The two other ways of completing these purchases. For example, they include both lender and vendor financing.
Vendor financing is where the seller accepts payment for the business over time. Essentially, the seller loans the buyer the funds required to complete the purchase. The interest rate, term and repayments costs form part of the purchase negotiation. These details also form part of the purchase contract.
Lender financing is when you get a loan to help you buy the business. Often the loan comes from a bank or other lending institution. Alternatively, there are some Canadian government programs to help people buy their new small business.
As the name suggests, some transactions include both vendor financing and lender financing. As lender’s never fund purchases without evaluating the risks, lenders require the details of the vendor financing component.
Lawyers To Draft The Agreement For Buying A Business
Drafting the agreement is a key step to buying a business. Using online forms may not recognize location specific laws. For example, the laws in another province or state may not be the same as in Calgary, Alberta. Lawyers help reduce the risks of any transaction, including these types of purchases. Lawyers not only help ensure that you get what you are supposed to when you are buying abusiness but also allow for a due diligence period. This time frame gives you time to make sure that you fully understand what it is that you are buying. This is a key step to protecting yourself when completing this type of purchase or investment.
Share Purchases Vs. Asset Purchases: How To Decide When Buying A Business
Of all the steps in buying a business, this can be one of the biggest decisions. There are both accounting and legal implications when you purchase a business as an asset purchase compared to a share purchase. When you think of buying an existing company, it is extremely important to discuss asset purchase and share purchase with your accountant and your lawyer.
Protecting Yourself When You Buy A Business
Finding a lawyer that you trust is important when you decide on this type of purchase. Many businesses fail in the first year of operations. Lawyers help you reduce your risks when you buy a business. We accomplish this with comprehensive due diligence prior to you buying the business. We inform you of potential hidden costs, limit your liability, are available as advisers, and can make sure that your business is structured in a way that works best for you. Lastly, your lawyer forms part of your team from the purchase and moving forward. We evenhelp you determine how to structure things once you complete the purchase. For example, some clients then complete a corporate amalgamation.
Types Of Business Our Law Firm Helped People Buy
Our law firm has help people when buying many types of businesses. For example, the following are some varieties of opportunities we help clients purchase:
- Accountant Businesses
- Massage Therapists
- Chiropractic Offices
- Investment Planners
- Coffee shops
- Oil & gas service Businesses
- Manufacturing Businesses
- Research & Development Businesses
- Gas stations
- Specialty stores
- Aviation Businesses
- Convenience stores
- Automotive repair
Finding A Lawyer To Help When Buying A Business
We want you to succeed. Each day we take pride it the success of our clients. The Lawyers at Kahane Law Office help when through the process of buying a business. Call us now so that we can get involved early in the process. This allows us to help ensure that you start off properly and with proper protection. Email or call us to get the legal process started. Call 403-225-8810 in Calgary and southern Alberta or toll-free at 1-877-225-8817 or email us directly here.