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    5 Replies Latest reply on Jul 8, 2008 8:49 AM by Adducent

    Purchasing an existing business in California

    sungodess Newbie
      I am new at this and I am wondering if anyone knows whether this can legally be done on a promissory note?

      Any advice is welcome!
        • Re: Purchasing an existing business in California
          LUCKIEST Guide
          Purchasing an existing business in California??

          Do you have a Lawyer??
          1 of 1 people found this helpful
          • Re: Purchasing an existing business in California
            Tracker
            Most small businesses are sold with the owner carrying back some of the financing in a seller held note (secured at least by the assets of the business). This is so even though most small business sellers want cash. In reality, in order for most of them to sell they must be willing to take back financing. And frankly a buyer would be making a mistake if they did pay all cash. There are many important things to cover when buying a business, how to evaluate them, what due diligence to perform, how to make sure it is the right deal for the buyer, how and where to find financing to buy the business etc. Be sure to study and prepare yourself as you get deeper into looking at purchasing an existing business.

            Good luck with your plans,
            Dennis Lowery
            Adducent, Inc.
              • Re: Purchasing an existing business in California
                sungodess Newbie
                I have done my research and the seller and I the buyer want to keep it simple.
                I plan on preparing a promissory note with payments in three even installments.
                making an initial payment when taking possesion of the business and the remaining two payments, one in october and one in January.

                An ecrow is too expensive and I thought that a legal purchase contract and promissory note with all details would take care of this once notarized.

                Any referrals or advice?
                  • Re: Purchasing an existing business in California
                    Tracker
                    I recommend always having your attorney involved to provide legal advice when buying/selling a business and to conduct a formal closing for the transaction supported with an appropriate Purchase/Sale Agreement to transfer the business ownership.

                    But there are services out there that could help you facilitate what you outlined. You could use a company such as Virgin Money to manage the loan/note. They'll provide the documents and support you need. Find out more about them at their web site:

                    http://www.virginmoneyus.com/BusinessLoan
                    s/tabid/138/Default.aspx

                    Dennis Lowery
                    Adducent, Inc.
                    1 of 1 people found this helpful