Cautions:
Before purchasing a business it is wise to seek professional advice. Some areas a professional can help with includes the following:
Business Valuation is the business priced at a fair value or is the owner asking too much?
Accounting records Are the records accurate? Or worse are they fake?
Legal Status Does the business have existing legal liabilities such as a lawsuit that you will inherit?
Purchase Contract What's included in the price of the business? For example: who pays existing debt, who owns accounts receivable and payable, will the owner assist with management, what are the financing arrangements?
These are a few of the questions that must be answered before you buy. Too many business purchasers find out too late what's important. Properly structuring a business before you buy it is one of the most important steps you need to take.
IFI Business Consultants