Reference no: EM132939245
1. What advantages can an entrepreneur who buys a business gain over one who starts a business from scratch?
2. How would you go about determining the value of the assets of a business if you were unfamiliar with them?
3. Why do so many entrepreneurs run into trouble when they buy an existing business? Outline the steps involved in the right way to buy a business.
4. When evaluating an existing business that is for sale, what areas should an entrepreneur consider? Briefly summarize the key elements of each area.
5. How should a buyer evaluate a business's goodwill?
6. What is a restrictive covenant? Is it fair to ask the seller of a travel agency located in a small town to sign a restrictive covenant for 1 year covering a 20-square-mile area? Explain.
7. How much negative information can you expect the seller to give you about the business? How can a prospective buyer find out such information?
8. Why is it so difficult for buyers and sellers to agree on a price for a business?
9. Which method of valuing a business is best? Why?
10. Outline the different exit strategies available to a seller.
11. Explain the buyer's position in a typical negotiation for a business. Explain the seller's position. What tips would you offer a buyer about to begin negotiating the purchase of a business?
12. What benefits might you realize from using a business broker? What are the disadvantages?