Post a new topic
    3 Replies Latest reply on Jun 20, 2008 8:04 AM by LUCKIEST

    I may be buying a business! Help!

    CAROLINOC Newbie
      Hello,

      If anyone can give me any advice on what things to look for when purchasing an existing business. I may be purchasing a tanning salon in a very busy beach community. We do have other businesses in my family but they are construction companies and not sure how to go about going to meet with the current owner. I am looking at the books and all her finacial records but if you can think of any other questions that would be very helpful. Thanks!
        • Before buying a business...
          MindNt Newbie

          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

           

           

          • Re: I may be buying a business! Help!
            LUCKIEST Guide
            I may be buying a business, Good luck

            MindNt gave you great info. Do you have a Lawyer??, An Accountant??
            Now is the time to use their professional help.

            It would be nice to know more about you. Go to Members page and tell us more.

            Again good luck, LUCKIEST