ASSETS
- What assets are you buying?
- Any intellectual property? (trademarks, trade secrets)
- Any inventory or goods obsolete? What is their value?
- What's the turnover of employees?
- How many employees? Their skill sets?
- Any training programs (sexual harassment, leadership, team building?) -Any written policy books, employee manuals?
- Will the owner let you interview any of the employees?
- Any salespeople that have key customer relationships?
- Who do they sell? What primary markets and what secondary markets?
- How do they currently keep their customers?
- How do they reach their prospects and customers with their message? (Channels?)
- What is their competitive advantage?
- cash flow statements
- balance sheets
- accounts payables and receivables
- benefit contracts
- insurance/pension/401 K
- outstanding debts
- debt review
- UCC-a forms - to find out who extended credit to the company -what secured assets were tied up in previous loans
- Do they have healthy margins?
- How do their customers pay for their products?
- Are their expenses in line with their revenues?
- Where will your down payment come from?
- What sources of financing do you have? (friends, family,)
- What sources of funding do you have (self-directed funds from retirement accounts, stocks, home equity)?
- Is the seller open to seller financing?
- Is the seller open to "run to own”?
- Can you furnish a statement of personal net worth and resume?
- What are the terms of renting the building/land if you are not buying?
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