When Buying A Business, What Are Some Basic Questions To Ask?

Most professional Business Brokers will have an information package available to you after you have signed a Non-Disclosure or Confidentiality Agreement, which protects the seller and new buyer's interests from damage done when proprietary information is made available to the wrong parties.

1. Why are you selling your business?
2. How many years have you been in business?
3. How many years have you been in business at the present location?
4. Did you create the business or did you buy it from someone else?
5. Are you a sole proprietorship, partnership, or S or C corporation?
6. Do you have tax returns and financial statements that my CPA can look at?
7. Which bank do you do business with?
8. What types of insurance must your business carry?
9. What licenses are necessary to own and/or run this business?
10. How many hours did you work per week in your business?
11. How many employees do you have?
12. Do family members work in your business?
13. Will the family members stay after the sale?
14. Are you willing to take a note and be paid over time instead of all at once?
15. Will you stay and work for a while after the business is sold?
16. How is inventory controlled?