BUSINESS FORUM · BUYER GUIDE
Thinking of buying a business? Check four things first.
Look at the records, how the business runs, what you would take on, and the money. If important information is missing, stop and ask a qualified professional to review it.
General information only. This guide cannot tell you what a business is worth, how to pay for it, or whether to buy it. It is not legal, tax, financial or professional advice.
Four things to check
Records, daily running, what you take on, money.
What records are there?
Ask which dates they cover, where they came from, and what is missing.
Who does it depend on?
Find the key customers, suppliers, people and ways of working.
What comes with it?
Find the leases, contracts, permits and other obligations.
What are you assuming?
Treat the price and how you will pay as open questions until they are checked.
Keep notes for each record
For each type of record, note what you have, which dates it covers, who can explain it, and what needs an independent check.
When to stop and check
Stop if important records are missing, if claims have no paperwork behind them, if numbers change without a reason, if you do not understand the terms, or if you are pushed to decide quickly.
Checklist of documents to ask for
- Financial statements, tax returns and supporting records
- Information about customers, suppliers and staff, and how the work gets done
- Leases, contracts, permits, licenses and insurance papers
- Your plans for the price, payment, debt, day-to-day cash needs (working capital) and the handover
This list helps you prepare. It is not a valuation and it is not a full check of the business (due diligence).
