A buyer can acquire a business from a person in two ways; first you can buy company stock from shareholders i.e. a stock sale and second is you can buy the company’s assets from the person itself i.e. an asset sale. While buying a business from any entrepreneur you should make sure that you have thoroughly researched about that business in the market. While buying or selling a business, there are several considerations which you have to keep in your mind such as:

Deciding when to buy or sell

Seller: While taking into account the state of the business, prospects for growth and when you want to retire or move onto your next project, timing to sale that business is very important. Inception about the business in aspect of a business owner is also a very important point when you are selling your business.

Buyer: As a buyer while you buying that business it is very important to know about that business brand value and about the financial stability of that business.

Hiring a professional adviser

It is very important to hire a professional adviser while you are buying or selling a business.

Seller: The professional adviser help you in the business valuation, handling and filtering enquiries of the buyers and to handle negotiations between you and the buyers. As will be difficult for you to find a genuine buyer or to crack the deal without the help of professional adviser.

Buyer: As a buyer, a professional adviser acts as an inestimable buffer between the seller and the buyer. This will also help in doing paperwork and to do negotiations between the buyer and seller.

Business Valuation

Business valuation is also an important aspect while selling or buying a business. It can be valued in two aspects:

. Asset Based Valuation

. Discounted Cash Flow

Sellers: It is very important to appoint an expert that can valued your business. As few sellers can undervalue or overvalue their business either through subconscious bias or in order get a strong return on their efforts.

Buyers: An expert can double check the calculation of the seller with reference to relevant financial records. They can identify the other things that are not accounted for the valuation that can make the business more or less valuable i.e. disruptive consumer trends or technologies on the horizon.