Recently I wrote an article on how to “Buy Your American Dream” by buying a business from someone else. Let’s continue that theme with a few more principles to employ when considering this ownership option. Thanks to my friend, Russell Brown, and his book, “Laws of the Business Buying and Selling Jungle” for the inspiration.
Buyer beware – of himself.
In the securities industry, full disclosure is the coin of the realm. But in the marketplace, caveat emptor – let the buyer beware – is the fair warning standard. If a seller misleads or misrepresents something, legal redress may be available. But business purchases that don’t work out are born more from inept buyers than from seller malfeasance.