BUYING SMART
Buying a business is a major, life-changing decision. Take the time to evaluate every aspect of any business you are thinking about buying. Then, hire professional advisers to double-check your research.
Find out as much as you can about the company’s:
Profit and losses
Cash flow
Salary and wage levels
Financial strength and stability of customers
Availability of raw materials
Patented or proprietary technology
Corporate income taxes
Payroll taxes
Value of the assets and liabilities
Reputation in the industry
Customer base and growth potential
Existing leases
Employment agreements
Union contracts
Valuable information is available from:
Competitors
Vendors
Customers
Distributors
Neighboring business owners
Trade or industry associations
Trade journals or magazines
Secretary of state’s office
Franchise or other tax boards
Current and former employees