by anthonycaliendo
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20 Questions to Ask Before You Buy a Business

• There are many questions to consider regarding financials, sales and marketing, legal issues, employees and company assets.

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• Why are you selling your business?

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• When did you decide to put your business up for sale?

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• Are you the business founder? How long have you owned the business?

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• What will you do if you can't sell the business?

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• How did you value your business and set your asking price? What are your current debts?

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• What financial documents do you have to support the sale?

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• How will you train the new owner and support the business transition? Are you available for a period after the sale to answer questions, provide information or consult?

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• Do you have any lawsuits or liens on your business? Have you ever had any lawsuits or liens?

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• What are your current debts?

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• Will you sign a non-compete clause?

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• How many hours per week do you work? Are you paying yourself?

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• How do you promote and market your business?

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• What is your businesses reputation? Have you won any recognition or awards? Are you rated by the Better Business Bureau or review sites such as Yelp? Do you have a following on social media?

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• What is the value of your current contracts? When do they expire?

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• What licenses and permits are required to run the business? When do they expire? What are the fees?

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• Does the company rely on any trademarks or patents? Who owns them? Will they be transfered with the business sale?

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• Is your business seasonal, or steady year-round?

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• Who are you main competitors? What are their advantages - and disadvantages? What market share do you have?

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• Are your employees aware the business is for sale? Do key employees have a non-compete clause?

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• What do your employee benefits cost? Are your employees unionized? Do they want to be?

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