As an expert in business purchasing, we at Century Mergers & Acquisitions know how much of an investment buying a business can be. As much as possible, you would want the best possible value upon closing.
And yet, you can never be too sure. The trickiest part of a business transaction is the liabilities that often arise from a seller’s pre-sale activities. When they go unaddressed or are without any actionable plan in place, you might find yourself wasting time and resources on a deal with low benefits.
This is why due diligence is so important. This period of waiting between the initial contact and the steps toward closure is intended to give buyers as much time as possible to determine the viability of a purchase. Use it well, and you can check if your investment in a business for sale can pay off well in the future.
The most proactive way to do that is to do research and compare the provided documentation with your findings. As professional business brokers in Roswell, Georgia, we recommend confining your search to the location where the business operates.
Cover the following in your research:
- Possible liens in their assets to be sold, which can be determined through the Personal Property Security Registry
- Their performance in tax compliance
- Building and vehicle registration
- Their standing with the Workers Compensation Board
- Registrations under Section 427 of the Bank Act
- Licensures and property permits
- Bankruptcy filings
- Human rights complaints and pending lawsuits
Alongside the search, you should also request if you can examine their audited financials, inventories, incorporation documents, and contracts. By doing so, you get to evaluate how the business has been keeping up with standards and can match the value it claims to offer. Then and only then should you get serious with your planned acquisitions.
For more advice on quality purchases and business real estate in Georgia, give our experts a call today!
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