Small Business Tips

Tips

Why is the business for sale? How long has it been on the market?
How long has it been in business? Who are the current owners? How many owners have there been?
Has it ever moved?
What is the selling price? What does the price include? What exactly would you be buying? Assets? Inventory? Fixtures? Good will? Equipment? Customer lists? How is the price divided up?
Is there any "bad will"?
Is the selling price negotiable? Will the owner hold a note? The terms of the note?
Would you be buying the corporation? The "name"? Does the corporation have any liabilities?
Is there an attorney? Contract of sale with a non-compete clause?
Have taxes been paid, including sales tax?
Would you be buying the building? If so, what are the taxes? Liens? Title?
Is it a rental? Is the lease assignable? A new lease? Met with the owner? Terms of the lease? Taxes included? Net, triple net, double net?
Accounts payable and accounts receivable? What would you be buying, if anything?
Will the current vendors continue to supply you? On what terms? COD; Net 30; or other?
Will the current employees stay on and do you want them to?

Now, look at the books and the financial history: go back five years. Have your accountant talk to the seller’s accountant. They speak the same language. However, don’t believe everything he or she tells you or your accountant.