Buying A Business – Part I Transaction Structure

Buying a business is typically a lengthy and complex process. This article is part of a series of articles that details each step of that process in order to better prepare prospective buyers. This is article 1 of 5, and deals with the buyers preliminary discussions with the seller, considerations for how to best structure the transaction and use of a "letter of intent".

Preliminary Discussions

During the preliminary stage of a potential purchase and sale transaction, a prospective buyer will have been in discussion with the seller and assessed all facets of the business potentially being acquired in order to reach an agreement on a purchase price and other fundamental terms of the deal.