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Buying or Selling Your Business

1/24/2011
Ilana Kramer
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Purchasing Your Existing Business: Buying a Good Business

Maryland businesses that are active have:  
  • an established customer base;
  • a source of revenue; and 
  • business operations
An existing business also may own valuable patents or copyrights.  For this reason, it is crucial to establish the division of rights and obligations BEFORE the business is purchased.

Although it is often more expensive to buy a MD business for sale than to start a new one, it is generally easier to obtain financing for an existing business. Investors tend to be more comfortable with a business that has a proven performance.

There are three primary actions to perform before buying a business for sale in Maryland:

1. Tax Returns:  review the tax returns and financial statements over the last few years for a Maryland business for sale. Maryland businesses can measure their growth potential with actual experience rather than conjecture.

2. Profits:  examine the current profits for the small businesses for sale. Maryland businesses will have expenditures such as employees’ salaries, utilities and insurance that you must deduct from the sales revenue.

3. Inspect:  inspect the operations of prospective business opportunities. Maryland businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods. 

For more information, contact Seth Kramer, Esq:  skramer@kramerlawfirmllc.com

Labels: business owners


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Rockville, MD 20850

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The Kramer Law Firm LLC represents small business clients throughout Washington, D.C. and Montgomery and Prince George's Counties in Maryland, including the communities of Bethesda, Bowie, Chevy Chase, Gaithersburg, Germantown, Laurel, Potomac, Rockville and Silver Spring and all of the surrounding areas.

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