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