ip can be very difficult. Evaluating the current economic factors simply means to know what you are getting into. Be sure to have some knowledge about the business itself and it's market. Know how to make and sell the product efficiently and in a service industry, be sure to know the current and correct way things are done-sometimes they are not one in the same. Location is key. "Location of the target can be a major determinate in both the financing of the deal and probable success in managing the business after closing. There's no sense spending time, effort, and money on a target located in the wrong place." (Tuller, 12) Along with this, the personal strife of having to travel a great distance to get to work can be very frustrating. So, be sure that the location of your potential business is profitable in every way. One the greatest minds of the 20th century, Albert Einstein, once said, "tax is the most difficult thing in the world to understand". Unfortunately, with the ever-changing laws, that problem gets worse every year. This means that you should have knowledge of the current tax laws. "'You will have a unique opportunity to make decisions on exactly how much money will change hands, and how I will allocated on the payment schedule."(Smorgenburg, 112) Maximizing profit for both you and the seller can only be done through proper knowledge of tax law, if you are not comfortable handling this alone, a consultant might not bad a bad idea. After all of the above is settled, the next thing to figure is the amount of initial income is required. Not only the income required to purchase the entity (which will be elaborated upon later), but also the amount of money that you need to survive for the years to come. "If you need $100,000, then don't look at smaller companies which can only yield $30,000." (Tuller, 23) Yet another crucial instrument in the purchase of any business is the Acquisition Plan. This document lists every step and de...
