can you get financial records on a business you are about to buy AFTER the owner puts it up for sale?

Answer 1

You need to do what is called due diligence which includes reviewing financial statements. If the seller does not permit the DD process, don't spend one more second on this company.

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.

Good Luck,
Dana B.

Answer 2

Factually, a serious seller must be willing to show any potential buyer the financial records of the business being sold. It justifies the value or price range being asked for and qualifies the business as a 'going concern'.

However, some sellers may choose to sell the business 'as is'. In such a case, your assessment of the business must be by physical inspection. You will also have to be adventurous by scoping out the business during opening hours to see what kind of customer traffic/goodwill it attracts. Speaking to people in the neighborhood is also not a bad idea. Where the seller keeps the books closed, see if you can negotiate for a discount on the asking price.

If none of the above alternatives is open to you, and the seller chooses to leave his/her books closed, then you may consider buying the business for its real estate value or other intangible value [such as goodwill]. In such a case, these variables will primarily determine the amount you'll be willing to pay for the "business".

Invariably, I imagine you're not asking about buying a public company since you would have a posse of attorneys and auditors scanning through records at the SEC offices already.

Best of Luck with the deal!

Answer 3

It will depend on the previous owner. Some are willing to show records especially if the business have done good before it was put on sale. Others just prefer to have the "book closed" and put it as history--the reason why some just sell it.

However, even if you have known that the business had some bad records, e.g poor sales, in the past, it will be a challenge to you to give it a "new look". A new image. Some business just fail because of many factors, as poor management, when in fact the business have potential in the market. Here, your entrepreneurial skills will be put on test.

Answer 4

If the company is a public company then the information that you are looking for may be found on the SEC website. If the company is private, ask the owner. If the owner has a problem showing you the financials, there is something that he/she is hiding. If you were planning on buying the company, look out!

Answer 5

It would be wise to get your accountant to review and analyze the financials before you buy it, if you want to continue with offering the same goods and services. Just ask those selling the business to give you copies of their financials for the past 5 years. Otherwise, if you are going to change the core component of the business and offer different goods and services, it wouldn't be that important.

Answer 6

Umm... those days, Asian eating places do no longer probably make plenty money for the reason that there are sooo a lot of them and starting to be style of buffets. Small buisnesses do no longer probably make money and tend to close early. the only way for small eating place to enhance is to make actual nutrition that are low-fee. that's the two significant element for all good eating places: yummy and cheappy. many of the coolest restaruants I 've been to, espacially the Asian ones that prevail are low-fee yet classic (and not Americanized). i'm afraid your seafood or steak bar heavily isn't any good except they are low-fee first of all... using fact steak and seafood tend to be ruled via extra effective chains like the Papa's. Sorry, yet few youthful adults suceed in beginning good eating places... additionally region is rather significant to any eating places... extra useful to open in say.. Las Vegas than in the outskirts of l. a. next to the line.

Answer 7

If it is a public company, it is easy. If it is a private one, you should ask the owner for the financial statements.