When buying business, many people think about buying property. Property depends on the type of the acquired business.
In general, a seller of business should prepare a detailed list.
Your task as a potential buyer, considering all components of the business, comes down to asking the right questions about the state and business value. And besides the physical assets you need to examine carefully other aspects of the business, such as:
1. Make sure that the list of assets prepared by the seller includes all equipment and furniture. You need to know the numbers of model and the date of purchase.
2. Is any equipment bought on credit? Is there still a guarantee?
3. Will you have the exclusive rights to the trademark, method of operation, the emblems?
4. What is the reputation of business among consumers and suppliers?
You should not completely trust the information offered by the seller. It is necessary to talk directly with customers and suppliers.
5. Have the owner of the business agreements that may affect the value of the property or restrict your freedom of action?
For example, the property can be bought on credit. At what stage of payment is the business, and will the conditions suit you as a new owner? How are things going with distributive agreements and contracts with employees? These agreements have a direct impact on the value of bought property. Make sure you understand the essence of the agreement, and what will occur with these agreements when changing the owner of the company.
6. Find out everything about the obligations of the company.
By this I mean much more than the payment to suppliers. For example, in connection with the requirements of environmental protection, many companies have acquired the obligation to clear their and the surrounding area. If you purchase a site that has previously been a place for dumping of toxic wastes, you can be ruined with the bill for the processing of your territory, even if discharges had been done for a long time before you purchased the business.
7. Learn the rules and laws that have a direct impact on business.
Do the norms change? Do the changes affect the profitability of the business? Changes in laws and regulations could have a direct impact on any type of business, from large industrial enterprises to private small cafes exposed to new requirements and restrictions.
8. Learn intentions of the seller.
If the former owner of the business decides to come back and organize a new competing business in the same market, your purchase can quickly lose its value. In your agreement with the seller it should be made clear his commitment not to undertake such actions.
In addition to the above, you should be aware of wider changes concerning the market or technology, and know exactly how these changes can act on business that you intend to buy. For example, a small shop can be sold on the grounds that the local authorities decided to build a huge supermarket near the site of your location. A small publishing company may be sold by virtue of the fact that large company acquires a new cost-effective technology that would produce the same work at much lower prices.
Business is a dream for lots of people. But nowadays business has become not only a kind of activities and occupation – it has changed into goods. It is not a rare case today when someone buys and sells businesses just to make money on it. Whereas another part of businessmen sells their businesses because of some troubles or inability to conduct it any more. In any case when selling a business it is better to address to experts who deal with it. And here business for sale site could be of much help because there one can learn much details related with this process. Canada residents are welcomed to go to toronto business for sale or vancouver business for sale experts.
And remember that before dealing with any issue it is better to investigate it. And today it is quite easy to do as Internet technologies give a nice opportunity to find anything you require.