Proper due diligence is the first thing to do when considering purchasing a company. You need to assess its financial statements, legal status and assets.When you are considering becoming a business owner, you have the option of buying an existing business or starting a new one. Discover the four distinct phases of a business acquisition as well as the key things to do at each point to set your acquisition up for success. Once you have a general agreement with the buyer, the buyer usually drafts and signs a non-binding letter of intent. In a sale of a business (asset sale), the business purchase agreement must specify to which assets and liabilities the purchase price is allocated. Get details on what items are considered business personal property and should be listed. Learn the key tax implications for three methods of buying or selling a business in Canada. Selling your business? A Business Purchase Agreement transfers a business entity from its owner to the buyer.