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

[Ibrahim1]

As for me reason why they want it sale is not my problem because it's might be a reason why they want it sole but what I think is more important is is the outstanding debt for you not to buy a company that you won't able to pay off the outstanding debt after buying and you really need to confirm from the family of does that want to sale the company if they are aware of such things and they also need to seat down on a round table then to know what's next

 

[Presido]

When purchasing a business the right question to ask is to know the essential things one has to know about the business.
This is because every business has a common guidelines guiding them.

 

[Sammyesx]

You have to also check the legitimacy of the business, if the business is registered, reason why the business is up for sale, if the business is in bankruptcy, try to determine the reason, carry out survey in other to find out public views about the business

 

[Justin]

When you are purchasing a business, you need to ask about capital,assets, liability, customer base etc. Since the price of business is market dependent, you need to ask about the market position of the business.

 

[Folaham]

When buying a biz, the following questions must be answered before buying any biz

(1) Determine if You Are Interested in Buying the Business

(2)Find Out How the Business is Valued

(3)Think About Financing Options

(4)Gather all the Necessary Documentation. What documents should be examined before buying the business?

(5)Learn About the Day-to-Day Business Management

 

[Joyemmanuel]

The most cautious one is the reason for the sale of that particular business. Many businesses projected for sale have a particular hidden reason that the owner himself or herself will never try disclosing it to the buyer. So that means all your research efforts for the projected business up for sale will gather information relating to the reason for the sale of the business and if that reason is positive, then you can go ahead and buy such business with confidence.

I totally agree with you
But I think location too should be put into consideration,i.e where is what you are selling located?
will you get enough buyers at that location?

 

[MarieArie]

Notice that most of these questions have a dual purpose: to get specific information and find out how savvy, sophisticated, and motivated the owner is. When buying a business, ask lots of questions and listen for the six interrogatives: who, what, when, where, how and why. In time, you’ll start noticing what isn't said.

 

[Ummigal]

You should be able to know how well the previous owners managed it. The reasons why they wanvit sold and the future prospects of the business. Also, location is very important
[automerge]1611830070[/automerge]

You should be able to know how well the previous owners managed it. The reasons why they wanvit sold and the future prospects of the business. Also, location is very important

 

[Mary]

Before purchasing a business the right questions one to ask are the following:

What was the previous record of the business befor you purchase it.

What has been the record of the asset and resources of the business.

How is the business sales going on before you purchase it.

The terms of condition and privacy policy of the business must be known before you purchase the business.

Once this question can be asked then there is finality of you purchasing the business.
[automerge]1611832285[/automerge]
Before purchasing a business the right questions one to ask are the following:

What was the previous record of the business befor you purchase it.

What has been the record of the asset and resources of the business.

How is the business sales going on before you purchase it.

The terms of condition and privacy policy of the business must be known before you purchase the business.

Once this question can be asked then there is finality of you purchasing the business.

 

[Victor-t]

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?

Those are some questions to ask the owner of the business, eg.
What is the name of your business, what are the benefits I can get from it, what makes your own business different form others with the quality that I can get from it.

 

[Shaffy]

Your evaluation is very important and they are the correct questions for the purchase of a business, another question that should be asked is the fluidity in the sale of products, the years that the company has been founded, truthful information of partners (in case they exist ) and if there is any legal history against the company. I enter other questions that may arise at the time of the conversation and are deemed necessary.

These are good points that you made which one should take note of when purchasing a business, especially the legal history.

This is one point people take for granted, even if they are starting the business themselves, but which has serious consequences.

 

[Goodday]

I totally agree with you
But I think location too should be put into consideration,i.e where is what you are selling located?
will you get enough buyers at that location?

Well, it is also important too but not that important. Almost every place on earth has people who are engaged in business and I think the location won't affect much but I it's what that determine the number of you will get.

 

[Joyemmanuel]

Well, it is also important too but not that important. Almost every place on earth has people who are engaged in business and I think the location won't affect much but I it's what that determine the number of you will get.

I will still insist that the location of the business matters a lot or should be put into consideration.
let us imagine opening a phone shop/phone repair shop in a banking layout, what will happen to the business owner?

 

[Caali]

It depends on the type of business you have in mind because different business models and different industries have their own caveats.The industry-specific questions aside, there are some metrics which will allow you to conservatively discuss corporate state of affairs for almost any company.

 

[SayOdumadey]

Purchasing a business needs a lot of things to be examined , a lot of questions needs to be asked and also to be find out like the business registration documents and how viable the business is

 

[Goodday]

I will still insist that the location of the business matters a lot or should be put into consideration.
let us imagine opening a phone shop/phone repair shop in a banking layout, what will happen to the business owner?

Yeah, l go your point here. You need to make market research for your business before you start. It can be possible to run a phone shop in an area where banking is popular and everything will go well too. Market research will come before the location.

 

[Joyemmanuel]

Yeah, l go your point here. You need to make market research for your business before you start. It can be possible to run a phone shop in an area where banking is popular and everything will go well too. Market research will come before the location.

market research is very necessary for any intended business owner but most business owners do not take out thier time to do that, when they get just enough capital to start up thier businesses then boom off they go without conducting a proper research.

 

[Jimmie150]

In purchasing a business there are a lot of factors to be considered. This includes why is the previous owner selling the business, is the business profitable, is the market friendly for the business amongst many other questions.

 

[Goodday]

market research is very necessary for any intended business owner but most business owners do not take out thier time to do that, when they get just enough capital to start up thier businesses then boom off they go without conducting a proper research.

In such case where someone don't perform market research effectively, the business is always exposed to greater chance of not succeeding. No matter talented you may be, but when you set up a business in the wrong place, you can never control the activities of the business activities towards profit making motive.

 

[Sarfraz Ali123]

i think following questions to ask the seller when buying a business which may help the buyer.
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?