If you are seeing or hearing this, then either your browser/user agent does not support Cascading Style Sheets, or you have elected to turn them off.  You may see and/or hear immediately following this notice alerts regarding national security or the Amber Alert system that do not apply.  To see if these alerts apply, follow the links provided.  -Commonwealth of Kentucky
The national Homeland Security Advisory System's Threat Condition is currently red, meaning severe.  Check your local radio or television stations for up-to-date information.  You may also check the National Homeland Security website or the Kentucky Homeland Security website for more information.  -Commonwealth of Kentucky
The national Homeland Security Advisory System's Threat Condition is currently orange, meaning high.  Check your local radio or television stations for up-to-date information, or you may visit the National Homeland Security website or the Kentucky Homeland Security website for more information.  -Commonwealth of Kentucky
An Amber Alert has been issued.  Visit the Kentucky Emergency Management website for information.  -Commonwealth of Kentucky
Image

Buying a Business

Buying a business can sometimes be an easier way to get into business than starting one from scratch. The main advantage to buying a business is that historical financial information is generally available – an important part of the analysis process for not only the potential business owner but for the funding source (banker) as well.

Buying a business necessitates doing a great deal of research and analysis to ensure that the aspects that made the business thrive in the past are still viable for the future. Be sure to get complete and detailed financial data on the business to be acquired. If you cannot obtain the data, or if the current owner is not willing to share the data, that could be a red flag and caution should be exercised.

Issues such as business valuation, non-compete agreements, the purchase agreement negotiation process, and tax issues all require a high degree of attention. Further, acquiring a business does not automatically shield the potential owner from liabilities incurred by the outgoing owner, so enlisting the services of a skilled and seasoned attorney as well as an accountant should be strongly considered.

Even then, researching the business, analyzing the firm’s financial statements, interviewing key employees and clients, and having a complete and thorough knowledge of every aspect of the business is the only way to determine if you should proceed with the purchase process.

For additional information or assistance, please email us at cedsbsd@ky.gov or call 800-626-2250.

Additional Resources:

U.S. Small Business Administration information about buying a business:
http://www.sba.gov/smallbusinessplanner/start/buyabusiness/index.html

Nolo article on things you should know before you buy a business:
http://www.nolo.com/article.cfm/objectID/42CD1570-AC36-44DD-A6EB310F081BC349/111/254/AR

Nolo article on making sure the business you want to buy is a good investment
http://www.nolo.com/article.cfm/ObjectID/9EF63086-386D-41F8-B106E34BA6A48A10/catID/C1DBB6FC-F9C3-40CA-8A4D77366ED0D4D5/111/254/ART/

 

 

 


Contact Us

Email:
econdev@ky.gov

Address::
Kentucky Cabinet for
Economic Development
Old Capitol Annex
300 West Broadway
Frankfort, KY 40601

Phone:
800-626-2930
502-564-7140