Questions To Ask When Buying A Business (Part 2)

​ASSETS

• What assets are you buying?
• Any intellectual property? (trademarks, trade secrets)
• Any inventory or goods obsolete? What is their value?

​FINANCIAL QUESTIONS

• 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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