: Use an Industry Report to check if the business is in a "maturing" area or if the population is moving away from the location. 4. Due Diligence Checklist for Buyers Before signing, your final report should answer:
: The Purchase Agreement and Bill of Sale. 2. The "Buy Your Own Business" Stress Test
: Never rely solely on provided spreadsheets. Cross-reference gross sales with bank deposit statements and verify major expenses with supplier letters. 3. Structural & Strategic Considerations buy your own business
(Retirement vs. hidden liabilities).
: Ask for accounts payable/receivable, inventory lists, and a breakdown of existing debt or liens. Legal Core Documents : : Use an Industry Report to check if
: Identify "owner add-backs" (personal travel, one-off repairs, or non-business wages) to find the true, normalized profit of the company.
: Investigate options like SBA 504 loans if you are buying the business real estate, or "owner-financing" where the seller acts as the lender. and current year-to-date unaudited statements.
: Request three years of audited financial statements, tax returns, and current year-to-date unaudited statements.