When the opportunity to purchase a business arises, the prospective purchaser is typically enthusiastic and excited about the acquisition. While optimism is clearly a valuable resource for a new business owner, the prospective purchaser must move carefully to avoid catastrophic surprises after the purchase. The purchaser must consider many issues, including cost or value of the target, tax aspects of the purchase, liabilities that may be intentionally or unintentionally assumed, and a myriad of other issues with the purchase of a business conducted in corporate form. This article provides a general overview of the many issues that a purchaser should consider for a successful acquisition. The size of the transaction and other factors may limit the applicability of some of the issues raised, but these issues should at least be considered by all purchasers.
