In buying a business, should I obtain financing before I negotiate a price?

Or should I sign a letter of intent first, get financing, and then go forward with negotiation? What are the steps in buying a business? What are the pit falls and things I should look out for?

I think either way. Yes, it will be helpful to know how much financing you have access to before negotiation. At the same time, you can always sign a letter of intent with a clause that says pending on approved financing. This way, it gives your a way out.

Firstly you need to know how much finance you are able to raise, then you can negotiate with letter of intent in offering.
But you need to full examine all aspects of the intended business before purchase or even making an offer.

This entails going to business accountant to have him run over books etc, then having Lawyer/Legal rep look over legalities of what pitfalls he can see.
Insurance would have to be involved as that is a major part in any business purchase....
Over all you need someone who is efficient in business purchase to assist u.
Cos it's well worth it to be forewarned of any complications that could prove costly if not seen beforehand...