Donna Genie explains assisting a business owner who is buying an existing family-owned business. The buyer and seller have already agreed on a sales price; the buyer is purchasing assets and will set up a new entity, requiring re-establishment of accounts. With the transition roughly a month away, the speaker emphasizes due diligence and selecting an entity/operating strategy to ensure a smooth handover.
Hi there. I'm working with a business owner who is purchasing an existing business from a family member and we are assisting this business owner in purchasing from their family. Now, they've already agreed on a sales price, which is a big enough issue there that many people struggle with. But as we approach that transition time, there are a lot of things to check off the list. As a new owner of that family business, you are most likely purchasing the assets of the business and you're going to start up your own entity for that process in starting your own entity, you'll need to re establish all of the accounts. And the owner that I'm working with today, we are looking at some due diligence. They're still about a month out from their transition date, so we want to make sure that we have all of that information set up. A really important piece there is discussing the entity strategy and how they will operate that business.
