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Step 1
Hire an attorney or business broker for negotiations. Even if you are a seasoned negotiator, retaining an attorney to broker the purchase of your consultant business is a wise investment. The attorney can draft important contracts, including mutual-disclosure and confidentiality agreements, to protect both parties during negotiations. Your business counsel can also advise you of any legal matters that might arise before or after the purchase of the consultant business.
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Step 2
Determine your ideal consulting business site, demographics and staff needed. Research the type of enterprise that matches your long term financial and lifestyle goals. Before your buy a consultant business determine the ideal location, customers and support team required for success. It’s also important to select an industry where your have existing contacts and expertise.
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Step 3
Research a minimum of 10 consultant businesses in your area. Proper due diligence of an existing enterprise is critical before making a purchase. Take your time. Consider many consulting business in your area, before finalizing your choice. Interview existing customers and vendors before you make an offer to buy a consultant business.
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Step 4
Ask to review the financial statements for each consulting business. The financial statements will determine the heath of the business. Low profits and high debt can devalue any business. But healthy cash flow, multiple streams of revenue, a stellar reputation and low overhead are signs of a thriving consultant business that you should buy.
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Step 5
Set an acquisition budget. Costs associated with buying a consultant business include broker and attorney fees, down payments, licenses, due diligence, and other incidentals. Hire a financial consultant to help you determine the actual value of the consultant business to prevent overspending or price gouging. Add an extra 30 percent of your total budget for unforeseen miscellaneous costs, as well.
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Step 6
Get pre-approved. Armed with business estimates and the proper valuation of the business you can secure financing from your bank. Present your business plan and the existing business’ financial statements to your banker for approval.
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Step 7
Enter negotiations with confidence. Equipped with months of research and careful planning, you are ready to finalize the business terms for your consultant business. If you have any last minute requests or concerns before you sign the final documents, ask your attorney or business broker for assistance.
