| 970-221-9950 admin@msbba.com Seller Registration | Buyer Registration 3 Overlooked Areas to Consider When Buying a Business Home / Buyer Articles / 3 Overlooked Areas to Consider When Buying a Business OCTOBER 30, 2021 BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORS BUYER ARTICLES 0 COMMENTS 3 Overlooked Areas to Consider When Buying a Business Without a doubt, there are a multitude of factors that go into buying a business. Since there are so many variables involved, it is easy to potentially neglect some important aspects. In this article, we will explore some of the key areas that can be overlooked when buying a business. Three areas in particular warrant special attention. #1 Legal Documents Upon first glance, it might seem obvious that all legal documents should be evaluated; however, many buyers forget that all legal documents are important and should be given weight. In short, there is no such thing as an irrelevant legal document, as one never knows what problems could be lurking within any given legal document. For this reason, you’ll want to carefully examine any legal document before making a purchase. The stakes are simply too high to not evaluate everything from trademarks and copyrights to leasing agreements. #2 W-2 and 1099 Forms It is important to note whether or not 1099 forms were given out instead of W-2 forms. The reason is that the IRS has very specific rules regarding these forms. The last thing that any buyer of a business wants is to sign on the dotted line only to discover that there are problems with the IRS. Taking ownership of a new business only to learn that there are IRS issues is something that should clearly be avoided. #3 Retirement Plans Just as it is vital to look over all financial documents, including W-2 and 1099 forms, the same holds true to evaluating retirement plans. You shouldn’t buy a business unless you know if the business’s qualified and non-qualified retirement plans are completely up to date with the Department of Labor. A failure to properly evaluate a given company’s retirement plans can be a very costly mistake. Ultimately, there are many potential topics that can be overlooked when buying a business. In this article, we outlined three areas, but in reality, there are many more. This fact underscores the tremendous importance of working closely with a business broker, as well as other trusted professionals, such as lawyers and accountants, in order to properly vet any business that you are considering. One of the key steps in buying any business is to take every possible step to perform due diligence. No business is a flawless enterprise, but a seasoned business broker or M&A advisor can help you to successfully chart a path forward. Copyright: Business Brokerage Press, Inc. Grand Warszawski/BigStock.com The post 3 Overlooked Areas to Consider When Buying a Business appeared first on Deal Studio – Automate, accelerate and elevate your deal making. Disruptive Factors in Selling Your Business Previous Post Are You Truly Ready to Become a Business Owner? Next Post Request a Call Back --- Buying Selling Both Representing Buyers & Sellers for over 27 Years! 155 E. Boardwalk, Suite 400 Fort Collins, CO 80525 Phone: 970-221-9950 Email: admin@msbba.com Quick Links » About Us » Businesses for Sale » Recent Transactions » Our Team » Buying a Business » Selling a Business » Valuate your Business » Contact Us Article Categories Buyer Articles Buyer FAQ Buying a Business Financing the Deal Seller Articles Seller FAQ Selling a Business Valuation From Our Blog Current Insights Regarding the Labor Shortage How to Purchase a Business Without Collateral The Most Important Factors in Any Partnership Agreement Are You Truly Ready to Become a Business Owner? 3 Overlooked Areas to Consider When Buying a Business © Copyright 2021 Mountain States Business Brokers & Associates|Site Design by Deal Studio