MindNt
1 posts since
Jun 19, 2008
1.
Before buying a business... Jun 19, 2008 11:12 PM
in response to:
CAROLINOC
Hi Carolinoc
Never look just for the financials of the company is really easy to make-up and later you will face the truth.
Ask which legal structure is (Solepropiertoship, corporation, llc, etc)
Ask for the at least 2 years of tax returns
If they use an accounting software get a copy of profit and loss statment. for the current year take a great look in all the liabilities.
check the lease of the place, how many years they have left.
Stay one day with them and take a look, how many people use this place, specially in not a weekend day
Ask with wich equipment is included and if is any payments left
ask i you will trained and for how long
check the business license and check the better business buro
Check all the permits, they must be up to date...
check the warranty of all the equiments and check with the vendors if the warranty will transfer to you.
check for any liens attached to the business.
check the business credit cards and ask for the last statement.
check if the business have a D&B credit file www.dnb.com
If pass all the above you will have some security of get that business. Good Luck
MindNt
