Buying an existing business can be a great opportunity without going through the process of starting from scratch. Skipping the lethal startup phase and engaging in operations as soon as the sale is complete is the way to go assuming everything is set up. However, just like used cars, there are a lot of businesses out there and some are real beaters. To avoid getting purchasing a junker, you need to fully investigate the business you’re thinking of buying and complete your due diligence.
Here are 8 questions to ask to ensure your due diligence has been performed:
- Why is the business for sale?
- What’s included in the asking price?
- What does the business’ past performance look like?
- What’s the business worth?
- Do you know how the business operates?
- What financing alternatives are available?
- What are you going to offer?
- What does the final contract look like?
Located on Vancouver’s North Shore we are the premier business broker in the lower mainland, contact us if you need any help buying or selling a business in the greater Vancouver or lower mainland areas.