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

[OlaGenius]

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?

There are a lot of assignment to be done by the new owner before accepting to purchase the company/business.

For instance, The wannabe owner must asks
>> Why the need for sale ? I mean why are you selling it ?

>> Up to date financial records and reports. E.g The income, the output and expenditures, any accrued loan/debt records of the company.

Etc

 

[Ogbest]

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?

Then purchasing a business, I know there are some important vital information you have to no about. You also need to know what really made the owner to sell his business. You just need to make proper verification before buying.

 

[mayreeh38]

A general back ground information about the business is mandatory. Why so the person putting the business up for sale? Will you retain the former workers or bring yours? Will you add other products or it is just a single one? Are the documents original? And what is the tax payment agreement? Some of these should be consider.

 

[mubinadaddy]

Purchasing a business that is currently running really need serious evaluation like the reason behind selling it out, is the company sole proprietorship or partnership, the legal registration of the company, and also do the background check on the company before proceeding for purchasing.

 

[Presh1503]

When purchasing a business,you need to know and understand the terms and condition involved in the business request for document that contains the details of the business
Then consider how the business will become successful

 

[Seun4luv]

Alot of questions need to be asked like What does the business do and What's the history of the business? Moreso,Why is the business for sale? How long has the business been operating under the current owner?

 

[Mastercoded]

Proof of ownership
Tax payment receipt for 4 years
witness from seller family
Police report
Certificate of occupancy

 

[Eodine]

A due diligence should be carried out when purchasing a business so you don't end up buying a wrong property. You should look out for things like annual reports for the past years, tax clearance form to ensure the government won't come knocking after you get the company etc.

 

[Bart Simpson]

Getting into a company has several characteristics that enable one to do a very tactical approach. The seller's reason of sale is probably the most relevant verbal questions you need to ask the seller before asking for past records with their clients. Additionally, we ask for a list of work completed with the previous clients or requests from their record. Both of their account books are very important to be able to maintain a good financial and state of the business of the amount of money.

 

[Adesuwa]

If the product of the business you are purchasing is consumable product the question you will ask is that are you sure the product is still on date Amin is it still good and you may confirm by checking the the expiry date.
While if it is not consumable goods the question you need to ask is that is their quality good and ask how many years or month guarantee did the product have.

 

[Sanusi]

The Right thing to ask when purchasing a business is to get full information about how the business works, then the next thing is the capital to start the business and the area to establish the business.

 

[Damismiling]

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.

Very correct all the aforementioned are the needed questions to be asked and be sure you get a valid response before you buy and business, mind you it's for proper affirmation of how best to continue with the business

 

[Sheun450]

• 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?

 

[Sariana23]

Very correct all the aforementioned are the needed questions to be asked and be sure you get a valid response before you buy and business, mind you it's for proper affirmation of how best to continue with the business

This is how @Damismiling , there are even more questions that can be asked in the moment, as it is important to have complete clarity when buying a business. Therefore, it is the investment of a capital that surely has been difficult to obtain, so the idea is to ask questions to improve and not be scammed.

 

[FreshKaz11]

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?

Just put yourself in the owners shoe if you want to sell something as a seller you tell your buyer what will sweeten to his or her ear so he could purchase what you are selling for him or her...

What I think you should do is to find one of the old staff and prose to get him a good position in the company when you buy and tips his or her pocket immediately,so with that you will know everything in details... Try it and see for yourself ..

 

[Halexcity]

When purchasing a business or before going into business. The first thing is to get your lawyer involve and get some paper Work.the question to ask are:
1 what are you flops?
2 how much profit do you made in the business when you started.
3. Customer.

 

[Oluwagbenga]

The right question to ask when purchasing a business is the question of what are the terms and condition for this business and organisation that I am about to purchase and also privacy and policy of the business also matters in the purchasing of a business entity

 

[Mostee501]

After making sure the business is legit and clean,you find out why the business wants to be sold,go through the company/business history,involve an expert in the business and seek legal advice. Just make sure your clear before proceeding.

 

[Kunkun]

Purchasing existing business is nearly simple when contrasted with beginning without any preparation yet not at all like another startup or starting a business without any preparation, existing business gives you settled area with perpetual responsibility for which can be changed to purchaser or arrangement of rent if area has a place with other landowner. A current business will have all framework and stock required alongside labor force who will actually want to remain even after change in possession; you don't need to complete new enlistment drive for new individuals.

 

[Nurudeen]

As an investor who wants to buy someone else's Business you need to ask the owner of the business why he or she is selling the business if assuming it's profitable. Another thing you need to ask is the large base of audience that patronize them to know how to calculate your profit before buying the business