Thinking about buying your boss’s business? It might seem like the opportunity of a lifetime — a natural next step after years of loyalty and hard work. But before you sign anything, make sure you understand exactly what you’re stepping into. Many key employees who take over their boss’s company end up burdened with hidden debt, poor deal structures, and legal pitfalls they never saw coming.

This guide breaks down the critical legal and financial questions every would-be buyer should ask before committing. From due diligence on the company’s finances and customer base, to understanding the real funding structure and protecting yourself from phantom equity, we cover the traps that can turn a dream deal into a financial nightmare. Learn why transition planning and clear contractual protections—including indemnification clauses and non-compete agreements—are essential to protect your future.