{"id":4169,"date":"2022-11-19T03:01:16","date_gmt":"2022-11-19T03:01:16","guid":{"rendered":""},"modified":"2024-03-26T17:09:01","modified_gmt":"2024-03-26T17:09:01","slug":"5-elements-for-buyers-to-investigate","status":"publish","type":"post","link":"https:\/\/www.sunbeltcanada.com\/atlantic\/5-elements-for-buyers-to-investigate\/","title":{"rendered":"5 Elements for Buyers to Investigate"},"content":{"rendered":"
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When you\u2019re in the process of buying a business, it\u2019s important to stay logical. No matter how good the opportunity may seem at first glance, be sure to carefully evaluate the business in a step-by-step manner. Regardless of how excited you might be about the prospect of ownership; you\u2019ll want to have your guard up when you go through the due diligence process. Let\u2019s take a look at 5 of the most important questions to ask yourself before signing on the dotted line.<\/span><\/b><\/p>\n

1. Do you have a personal interest in the business?\u00a0<\/b><\/p>\n

Needless to say, owners have made businesses successfully thrive even if they lack a personal interest in what is being sold. However, you might want to stop and ask yourself if you do indeed have a passion for the goods or services offered by the business in question. If you are uninterested, you may find it harder to make a long-time commitment.\u00a0<\/span><\/b><\/p>\n

2. What is the business plan like?\u00a0<\/b><\/p>\n

It\u2019s helpful to see the goals of the current owner and evaluate which of these goals have actually been achieved. If there is no business plan, this should give you pause.\u00a0\u00a0<\/span><\/b><\/p>\n

3. How does the business perform?<\/b><\/p>\n

Take a look at the business\u2019s overall performance. Do you get the feeling that the business requires many hours of intensive work from the owner? If so, remember that this owner putting in all of those hours could be you in the near future. Is there a reliable manager to oversee operations in your absence?<\/span><\/b><\/p>\n

4. What are the demographics?\u00a0<\/b><\/p>\n

Who are the key customers? Are there several main accounts that the business depends upon or a wide variety of customers and clients? Needless to say, if the business relies on just a few key accounts, this could be problematic if things were to change. Further, do you see a clear way to add new customers in the future? Before you buy a business, you\u2019ll want to feel confident that you can help it thrive and grow.<\/span><\/b><\/p>\n

5. Are you satisfied with the financials?<\/b><\/p>\n

Once you\u2019ve successfully signed the necessary written agreements, you\u2019ll want to take a deep dive into the business\u2019s financials. Make sure that everything has been provided including:<\/span><\/p>\n