0104 Buying a Business

Part of the Entrepreneurship Section of the CEA Curriculum


The SBA states that, “for some entrepreneurs, buying an existing business represents less of a risk than starting a new business from scratch.”
While the opportunity may be less risky in some aspects, performing due diligence is an essential step to understanding if there are any hidden liabilities to the business purchase in question. It also gives the buyer a greater awareness of what it is they are actually buying.

In this course we begin by asking whether or not buying an existing business matches the potential buyer’s skills or interests.

We then discuss the benefits to purchasing an existing business and the possible downsides to buying an existing business. We discuss hidden problems associated with the ability to obtain all licenses and permits, zoning requirements and environmental permits.

There are a number of different methods to determine a fair and equitable price for the sale of the business. We recommend viewers to watch our business valuation course but cover the basics here.

We also cover the process of purchasing a business which includes the following basic documents:

  • The Letter of Intent
  • Sales Agreement (Purchase Agreement)
  • Convenant not to Compete
  • Bulk Sales Transfer (Uniform Commercial Code – UCC)
  • Security Agreements
  • Promissory Note
  • Transfer Documents which includes items such as the lease, any patents/trademarks, franchise agreements, and the title to any vehicles
  • Bill of Sale
  • Closing Settlement Statement
  • Consultation/Employee Agreement
  • IRS Form 8594 – Asset Acquisition Statement


Learning Objectives:
After completing this course, you will be able to:

  • Know the steps to finding the right business
  • Understand the tools to research and evaluate it
  • Articulate the steps to making an offer and performing due diligence
  • Appreciate the problems and opportunities that will come from owning a business


Course Curriculum

Buying a Business 00:04:00
Considerations Before You Buy 00:03:00
The Process of Buying a Business 00:04:00
Research and Gathering Information 00:05:00
Specific Items to Research 00:10:00
Valuing a Business 00:01:00
Required Documents for Buying A Business 00:03:00
The Sales Agreement 00:14:00
Ancillary, Yet Important Documents 00:06:00
The Closing 00:03:00
Quiz – Buying a Business 00:19:00
Buying a Business – Final Exam 00:29:00
Course Evaluation
Course Evaluation Form – Buying a Business 00:00:00

Course Reviews


1 ratings
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  1. 5

    This is a very informative course on the in’s and out’s of buying a buying a business. I must say this should be a required video to watch before any client or person decides to go about owning a business this way.

  • Price Options +
  • 1 year
  • Course Badge
  • Course Certificate
  • Program Level: Fundamentals/Beginner

    101 minutes | CPE = 2 units

    Field of Study: Finance

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