Many people decide to buy a business because they think it will be less work than a 9-5 job, or they think that at least they can’t be sacked. The first is simply not true and while the second may be true, a business can easily fail and so in that way they will lose their job – and often much more. So before you purchase a business, consult with commercial lawyers and an accountant to make sure it is a good deal.
Meanwhile, here is a checklist of things to see about before you buy.
- Make sure the sellers are not due for pending litigation. This can point to problems with the business.
- Do your financial due diligence by having an accountant crunch the numbers you’ve been given. They will soon seen if the profit has been artificially inflated just prior to selling.