when buying an existing business what should you check?

Question

i'm thinking of buying a business and am after your thoughts on what to check before checking the books etc.Is there any loopholes that any one has been caught in, would like to hear how to avoid. The business is a ruarl country supplier store which sells fenceing equip food for livestock general hardware for country pepole. any advice would be greatly appreictaed

thank you darren

Answer 1

You need to do what is called due diligence. In short you check everything - and the due diligence process will take you through it. It is best to hire someone with experience to do this unless you really know what you are doing.

Answer 2

2 things , 1st check out competition, ask where people in the area get their supplies, they might go somewhere else, which is why business is being sold.
2nd, as a graphic designer, if they have a logo, you may feel that buying the business includes the logo, this may not be true, the artist is legal creative owner, like a musician or a writer, unless he sold all rights to current owners. You may be sued if you buy the business and use the old logo, if they do not have one...care to get one? e mail me.