Finding a Business to Buy- Information Gathering

Finding a Business to Buy- Information Gathering

To continue on in sequence with my previous finding a business to buy post, we need to look at information gathering for a business you want to further look into.

Once you have signed the non-disclosure and asked for further information, you will receive a packet of vital business buying information. In most cases you are not going to get 3 years worth of tax documents or even P&L reports for that matter. You can ask for it, but the odds are slim on getting it. That’s too much information at this point to give to a semi-committed Buyer.

What you will get is a profile which will give the latest 12 months of revenues, expenses and cash flow information. Other provided information may be whether inventory is included in addition to its value, the value of furniture, fixtures and equipment (FFE), an extended business description, and lease or property purchase information.

At this point the address and name of the company may be given to you, but often that is done after you have reviewed the information and request to see the business. Again, this avoids giving tire-kickers vital information and the location when they are really not serious Buyers. This may disrupt the business or waste the Seller’s time.

Click this link for a short video on information gathering in regards to buying a business.
http://www.youtube.com/watch?v=YNu_3oyLfAA

Once you watch the video, click here to grab the rest of the tools you will need to successfully purchase a business.


To Your Business Buying Success-

The Business Buying Guru