Boise Idaho Business Guide: Do Your Research
By using the financial documents to confirm whether this potential Idaho business is worth the asking price, you will easily uncover the volatility in the businesses financial condition.
Before you go any further you will need to get the seller to agree on signing a non-compete agreement to prevent interference with the business profitability after the ownership transfer?
What documents are needed at closing?
Some Examples Include:
- Purchase Agreement
- Promissory notes and collateral agreements for any financing that you’ll be using.
- Commercial lease (and any increases in rent)
- Transfer documents for any vehicles that may be part of the purchase
- Bill of sale to transfers ownership of tangible business assets
- Non-compete agreement from the seller
- Bulk sale documents – these govern the sale of inventory
- IRS Form 8594 – shows how assets are allocated during the purchase
- Consultation/employment agreement – for additional training during the transitional period or longer.
- What assets and liabilities are included in the sale?