Asking the Good Questions
You may want to know why the owner is selling a business. Regardless of the answer to the question why the sale, you may want to make the right decision to buy and at what price. If, for instance, the owner decides to sell in order to retire, that could be a good enough reason to motivate you to buy. When, however, a business owner is relatively young and is selling a business “to do something else”, you may want to think twice before making that purchase. It could be that the owner is not telling you all about the reason behind the sale.
Asking to see the financial statements of the past three years of a business you are buying is equally pertinent. Buying a business is like buying an income stream, you therefore should ask about the financial statements of the business. Further, asking to know who your biggest competitors are and what they are doing in the marketplace will give you a competitive advantage. And the expert knowledge of business brokers can help you better understand the trends in the business industry you are buying and indicators about threats and opportunities which should all factor into the purchase price of the business.
Buying A Business in South Florida
Also, you may want to know what the seller has been doing to increase sales and profits and what were the seller’s handicaps—whether it was lack of resources or lack of capital to have made those investments to grow the business. Again, it won’t hurt to ask whether the seller is willing to finance part of the purchase price. Over 75% of businesses sold in the US involve some seller financing with comparatively better financing terms.
Overall, asking all the important questions can help you get specific information about a business you are buying and the responses you get will help you begin to understand the general sophistication and motivation level of the seller. And going into the process of buying with the support of experienced business brokers gives you the edge.
For additional information or to contact us click on Palm Beach Business Brokers
Cooper City Office
10620 Griffin Rd B-105,
Cooper City, Fl 33328
4720 NW Boca Raton Blvd,
(NW 2nd Ave) D-103
Boca Raton, Fl 33431