An Acquired Taste
Before you buy that business, don't just give it a once-over--put it under the microscope.
Are you considering buying an existing business? Whether you use a business broker or go it alone, you will definitely want to put together an "acquisition team"--your banker, accountant and attorney--to help you. These advisors are essential to what is called "due diligence," which means reviewing and verifying all the relevant information about the business you are considering.
The preliminary analysis starts with some basic questions. Why is this business for sale? What is the general perception of the industry and the particular business, and what is the outlook for the future? Does-or can-the business control enough market share to stay profitable? Are the needed raw materials in abundant supply? How have the company's product or service lines changed over time?
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