What to look for when buying a business
What are the reasons for selling?
What track record does the business have?
Identify key customers and suppliers and establish their trading terms.
View and obtain copies of all legal contracts. Pay special attention to the lease agreement covering Business premises.
Establish what assets are encumbered.
Ask for details of current or pending litigation that the Business might be involved in.
Establish external factors that might negatively affect the business.
Find out whether any other party holds any right or title to the business.
Ensure that there are no disputes with the Revenue Service that might impact on future payments.
Do not accept any figures at face value. Have them checked out by a Professional and request certification by the External Accountant to the Business.
Is the Seller prepared to sign a Restraint of Trade agreement when a sale is concluded?