How To - Use the Business Buyer’s Checklist

The buyer should ask a number of questions when assessing a business for purchase. If you are looking at buying do not jump in and sign an agreement until you have fully assessed every area of the business. You will also need to bring in your accountant or other financial adviser so that you have a second opinion on all matters concerning the purchase.

This would include a full investigation of the financial affairs of the business, as well as looking at its assets, staff, suppliers and customer list. You will also need to check the market in general and talk to other business owners in the industry.

The seller has reasons for selling. It is your responsibility to find the true reason for the sale in case the sale is to mask something that will cause you loss in the future.

Some questions needing to be asked include the following:

  • Why is the business for sale?

  • Is the business in an industry you have expertise in?

  • Is the market for the type of product the business has still buoyant?

  • Who are the competitors and is the business able to compete against them?

  • Have you decided which legal e...

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How To

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