Considerations for Buying or Selling a Business
Buying or Selling a business has many considerations and one cannot talk about every aspect of this topic in a single article. As such I have decided to make this into a Three Part mini series to discuss some of those aspects. My ultimate recommendation is to seek the combined counsel of your Lawyer, Chartered Business Valuator, and your Professional Accountant. This mini series will focus in general terms on the following major issues at a very surface level to give you a broad idea on things to consider and is by no means an exhaustive list of considerations. Every business is also different and hence some of the things I discuss may not even apply to your case. The focus areas of this series is geared towards small to medium enterprises and the major topics are as follows:
1) Tax consequences in structuring the deal
2) Valuation concepts and due dilligence
3) Transition of Business (coming soon)
Please enjoy these articles as much as I have enjoyed writing them.
-Wilson Wong, CA