Planning to Buy a Small Business ?
He has no background in nursing or placement business. The owner-manager of the said small business offered his help to ease the transition by orienting him of the day-to-day operations.
He was reluctant to decide because he is not only putting his savings but also his daughter's college plan.
When he approached to get my advice, I gave him a list to consider.
1. The reason for selling the business.
2. Why it remained a small business, if it has been operating for more than a year.
3. What is the revenue potential. In a small business where accounting is done on a part-time basis by a professional or by the non-accountant manager-owner, income may have been deliberately understated and expenses overstated to avoid taxes.
4. What's the valuation of assets?
5. What are the types of assets on hand. What are the estimated useful lives?
6. Are there intangible assets included in the balance sheet? These are assets which could have included unamortized start-up costs.
7. Who are the employees? Are they willing to stay after the sale?
8. How much is the selling price?
business,financial statements ,balance sheet ,statement
posted by cathy at 9:16 PM
Comments on "Planning to Buy a Small Business ?"
-
Unknown said ... (8:11 AM) :
-
Anonymous said ... (12:21 PM) :
post a commentGreat article. I'm looking to buy a business, so this advice will be very helpful. I was wondering though if you could direct me to a reliable website where I can find a business to buy? I've been looking, but everywhere I've checked has been coming up short. Thanks.
@Abby -- I suggest checking out your local Chamber of Commerce. They should be able to help you.
I also highly recommend BizTrader.com. It's a global marketplace for where you can buy, sell, or invest in a small business. There are bunch different businesses for sale, so you should be able to find something you like. It’s a great place to buy a business. Check it out and good luck!