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

[Deleted member 403]

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?

 

[Goodday]

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 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.

 

[Sariana23]

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.

 

[Chumzy]

It is important to ask about the assets of the business and the liabilities first. It is basically knowing the worth of the business at that particular time.
To know these and more, one should obtain the books of account of the business.

 

[Kamon c4]

Purchasing a business requires one to be very cautious and tactical. The reason of sale is actually the most important verbal questions you need to ask the seller before requesting for past records with their clients. Also request for the remarks or review records from their past clients. Also their account books are very important to know the financial state of the company or business

 

[joy101]

It is very important to ask questions like the type of business am about start, is it profitable will I make a benefit from business? What and what should i start with, the kind of product to purchase, this are the questions someone need to consider before going to business,

 

[Josemendez]

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?

If the business was offered for sale by the business owner , then you need to make enquiry on why the business is up for sale , secondly you need also to check if the business is in good shape , whether they have any outstanding payment in their payroll

 

[ahmedo24]

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 very basic questions to ask are what you have mentioned here though the reason why the business is been put on sale will determine the next line of questions to ask. If the business is put on sale because the owner doesn't have qualify hands or he wants to relocate you may ask for the security nature of the environment where the business is situated , the most difficult challenges the person has face and the opportunities.

 

[WhiteHouse]

Request three years of tax return papers. (In the event that an entrepreneur professes to have gotten more cash-flow than the expense forms show, yet didn't report it, the person might be deceptive in different territories as well.)

 

[Dubai]

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?

As a buyer, I would be interested in knowing the previous financial balance sheet at which the company has been operating. If there are huge discrepancies, then I would ask why. Also, the history of the business, as well as if the company is in any form of debt. Who the shareholders are if there are any.

 

[MizzLala]

The initial ones you stated are very good. On top of those, at the forefront of my mind would also be why the current owner is selling because it could point to issues you don't want to come up against. It's all very well asking for the successes, but I'd also want to know what challenges they faced operating from where they are.

Post automatically merged: Jan 8, 2021

The initial ones you stated are very good. On top of those, at the forefront of my mind would also be why the current owner is selling because it could point to issues you don't want to come up against. It's all very well asking for the successes, but I'd also want to know what challenges they faced operating from where they are.

 

[Arslan]

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?

How many hours a week do you work in the business?​

This is an important question if you’re concerned about your time commitment to the business. If you plan to run it as a part-time venture – possibly alongside another business – it’s worth finding out how many hours the current owner logs each week. Ask if they take holidays, too!

 

[Abibatabosede]

When you are proposing a business you must first know the purpose for which you want to go for the business, the location that will be good for the business, the amount of money required for the business and your prospect customers.

 

[Janita]

I never purchased business so personally i really don't have an idea or experience ,
But personally i really need suggestions about this task that what pattern should we follow to work

 

[Sincerem]

You said it all, with those questions you thrown on the house owner. I wouldn't involve in buying a house without proper documentation of ownership. Or crisis marred building, meaning it is in lawsuit with another person over dispute of land encroachment.

 

[Eamodu]

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?

Personally if I want to buy a business from anyone, I will be asking when he started running the business,of the risk involved in the business, profits margins,challenges in the business,where he buys from if it's a business he buys things to resale, then lastly I will ask him why he wants to sale the business. And I will observe his reply and make my decision based on them.

 

[Ridorz]

There is nothing bad in purchasing of existing business but you must take some steps in which to Know maybe the business is worth buying. You must make research on the business through investigation by asking questions from the business owner and even from others people to know more about the business. You must get answers to these questions from business owner, why to sell the business, what is business debit, what us the rate of selling of product, when the business started, the goals and objectives of the business, etc this is what you will use to evaluate the business.

 

[Sotherefore]

there are a lot of things to ask the original owner of the company if you are buying it directly from them and beside asking alot of question is not the only way to prove the genuineness of a company sometimes they must backup their saying with valid documents that can prove the genuineness of the company,sometimes any company or business organisation you are buying directly you must ask for a record or any document to show that this business is registered with a recognised government agency or is government approve ,with this you may not have any problem of facing the law for doing false transaction.

 

[Afoskalex]

One must not just purchase a business without having background information about the business. Questions to be asked include: 1. Why is the owner selling the business? 2. What is the history of the business 3. What were the annual gross revenue of the business for the past two years? 4. What is the asking price? 5. How can you make the business successful? You must also request if the business is properly registered.

 

[Highflyer]

When purchasing a business, you need to know all the terms and conditions associated with it, you need to request for a signed document which contains in detail all the things you need to know about the business, like the current net worth of the business, it's partners, stock and shares.