Purchasing a business. What are the right questions to ask?

[chicnthin]

Asking questions is only fair before buying a business. I believe it's important to know the financial condition of the business and if it has an outstanding debt. Knowing why the current owner is selling its business is also a must. And ask about how did they came up with the price.

 

[Damismiling]

Before a business can be sold out, most times one or two things might be wrong with that business or something is about to happen, ask questions on what is wrong also ensure you get the history of the organization, previous financial history and outstanding debts

 

[MarieArie]

If I want to purchase a business, what are the right questions to ask the current owner? What factors should I be cautious of when deciding to buy another company? Up to date records, running costs, annual turnover, outstanding debts, the reason why it's for sale, and paperwork would be a good starting point. Any other suggestions?

You have to understand the reason why you want to purchase such business. That's the first way to go. Do a survey as to why those people are willing to sell out their business or businesses. With these prior information, your new business will do just fine.

 

[Adebayonle7]

I will be very cautious of their liabilities too. In a case where they even show it themselves without request, it is still safe to ask for their long term liabilities. A successful company should have plans in place to pay off its debts. If that is not put into consideration, then such business can meet its doom at an unexpected time.

 

[Chumzy]

First thing should not be about asking but reading about the company.
Then the books of account and all details necessary for the purchase to go through.
You can also ask about the goodwill of the business.

 

[Pirate]

I think the first question should be about the financial status of the company, about their liability and assets.
Also, the difficulties and downsides to running the business because for most people to sell their business, it means there must have been a problem somewhere.

 

[Ruthyfizy]

I think the first question should be about the financial status of the company, about their liability and assets.
Also, the difficulties and downsides to running the business because for most people to sell their business, it means there must have been a problem somewhere.

That's so true in order to avoid the same problems repeating itself,it is wise to have a thorough knowledge of their liability, assets and even debts inquired before purchasing the business..

 

[Richard92]

There are several questions to ask when purchasing a business, the first question to ask which is very important is the reasons why the owner of the business is selling it. This will help you to know whether to buy the business or not. Many people sell their business for different reasons, it may be the owner does not have enough money to run the business anymore or he needs to sell it to support another business or he is facing challenges with his costomers and location.

 

[Lyrrex]

If you are thinking of buying any business or company you must ask for all valid documents that that will prove the legitimate of this company, it must also be registered with a trust government organisation,if it is a business company if you need to make sure that they don't have a bad history of dubious activities

 

[Success05]

If I want to purchase a business, what are the right questions to ask the current owner? What factors should I be cautious of when deciding to buy another company? Up to date records, running costs, annual turnover, outstanding debts, the reason why it's for sale, and paperwork would be a good starting point. Any other suggestions?

Before purchasing a company, you need to find out the ROI of the business, reasons for the sake of the business, check for any outstanding litigations, do some personal research to find out the performance of the company and their relationship with host community.

 

[Ralphjoe]

The company's current revenue generation capacity should be well questioned so as to avoid a situation whereby you will acquire a business that may go bankrupt at any point in time.
Business viability should be at the front burner of your enquiry about the business, this is necessary to ensure that the business does not fold up anytime in the future. One of these may serve to be the underlining issues why the owner want to sell off the business.

 

[Tayyabah]

If I want to purchase a business, what are the right questions to ask the current owner? What factors should I be cautious of when deciding to buy another company? Up to date records, running costs, annual turnover, outstanding debts, the reason why it's for sale, and paperwork would be a good starting point. Any other suggestions?

Legal paper work should first confirm by the company owner.
I think,what is the market values of the company products is high r low level, this question is I think very important to ask for to grow and run this new business set-up .

 

[BrolySSJ]

If I want to purchase a business, what are the right questions to ask the current owner? What factors should I be cautious of when deciding to buy another company? Up to date records, running costs, annual turnover, outstanding debts, the reason why it's for sale, and paperwork would be a good starting point. Any other suggestions?

All the points that you have mentioned here Alex are very vital when it comes to purchasing a business, especially when it comes to the documentation and the reason for the sale because e these are very important factors in how the business will proceed in the future and the legality of all of it as well.

But in my opinion the questions should be expanded beyond just the owners and to the people in the area as well. Ask them about the business and what they thought about it in operation. This is a good way to see the credibility and the reputation of the business that you are interested in buying. Hope this helps you.

 

[Alexandoy]

When buying a business I would probably check on the market base if there is still a good number of demand and the availability of suppliers.

With the owner I would ask why he is selling the business and how much capital he had initially invested. The next question is his next plan action when his business is sold. I am expecting the answer to the last question to be a change of business so as not to give a hint that the business is not doing good.

 

[Lagazine]

If I want to purchase a business, what are the right questions to ask the current owner? What factors should I be cautious of when deciding to buy another company? Up to date records, running costs, annual turnover, outstanding debts, the reason why it's for sale, and paperwork would be a good starting point. Any other suggestions?

The right questions to ask if you want to purchase a business is, how long will it take the business to yield profit and what is the percentage profit one can get per day from the business? Then, what type of customer do you expect, to patronise your business? These are little questions one need as a started in business.

 

[Adexgrace]

When purchasing a business that has been owned by a person before, one need to also ask they have been maintaining their relationship between their customers, How organized is their management? And also their sales layout and format is also very important. And also one need to take note why the business is now for sale, so that the new buyer can work toward that, so such wont happen again.

 

[Rimsha kanwal]

If I want to purchase a business, what are the right questions to ask the current owner? What factors should I be cautious of when deciding to buy another company? Up to date records, running costs, annual turnover, outstanding debts, the reason why it's for sale, and paperwork would be a good starting point. Any other suggestions?

7 questions to ask the seller when buying a business

• Why are you selling? ...
• How have you arrived at the asking price? ...
• How would you grow the company? ...
• What outcomes are you looking for? ...
• Are you willing to agree a non-competition clause? ...
• Who are your key customers, suppliers and staff? ...
• Are you willing to stay on for a transition period?

 

[Klashlly]

To Purchasing a business.The right questions may likely to ask​

-What current debts does the company have? Are there any liens against the business?
-Are a substantial percentage of accounts past due? If so, how overdue are they? Is the company writing off any bad debts?
-Does the company have adequate working capital?
Does the company have a good relationship with its bank
-Legal
Is the business involved in any ongoing lawsuits, and if so, what are the details? Has it been involved in lawsuits in the past, and if so, what was the outcome?
-What are the company’s current contracts? Have your attorney review them. Is any business done without contracts?

 

[GIFTMICHAEL]

If I want to purchase a business, what are the right questions to ask the current owner? What factors should I be cautious of when deciding to buy another company? Up to date records, running costs, annual turnover, outstanding debts, the reason why it's for sale, and paperwork would be a good starting point. Any other suggestions?

When purchasing a business or company you should bear in mind that you are going to inherit both the good and bad of the company.
Supposedly you bought a new business you should ask questions that will enable you to scrutinize the in and out of the business you are purchasing.
Why do you intend to sell this business or company?
What are the current challenge that the company is facing?
How long have you been able to run this business? Etc..

 

[Patrik]

The first thing i would ask about is the reason why this business was put on sale, i personally wouldn't like to buy a business that's sold just because it's a failure, then comes other questions for example like how much that specific business can generate etc..