- Why is the business for sale? How long has it been on the market?
- How long has it been in business? Who are the current owners? How many owners have there been?
- Has it ever moved?
- What is the selling price? What does the price include? What exactly would you be buying? Assets? Inventory? Fixtures? Good will? Equipment? Customer lists? How is the price divided up?
- Is there any "bad will"?
- Is the selling price negotiable? Will the owner hold a note? The terms of the note?
- Would you be buying the corporation? The "name"? Does the corporation have any liabilities?
- Is there an attorney? Contract of sale with a non-compete clause?
- Have taxes been paid, including sales tax?
- Would you be buying the building? If so, what are the taxes? Liens? Title?
- Is it a rental? Is the lease assignable? A new lease? Met with the owner? Terms of the lease?
Taxes included? Net, triple net, double net?
- Accounts payable and accounts receivable? What would you be buying, if anything?
- Will the current vendors continue to supply you? On what terms? COD; Net 30; or other?
- Will the current employees stay on and do you want them to?
Now, look at the books and the financial history: go back five years. Have your accountant talk to the
sellerís accountant. They speak the same language. However, donít believe everything he or she tells
you or your accountant.