Once you’ve decided to purchase a business, it is very useful to draw up a list of questions to ask your business transfer agent or directly to the seller that will help you make your decision. The more information you gather, the more you will feel comfortable with making a rational assessment on the business you are looking at. At Intelligent Business Transfer we always spend time with each of our sellers to understand the exact nature of the opportunity.
Here are five questions that you should ask sellers before progressing with the purchase and signing a provisional contract.
1. What is the primary reason for selling the business?
Crucial to understanding the true nature of the sale, the response to this question will help you assess the opportunity.
2. How would the current owner recommend growing the business?
This is a great question to ask, especially if the owner is selling due to non business reasons. An honest response will provide you with insight that could save you months of testing, research and investment.
3. What are the businesses biggest challenges?
The answer to this question should help you avoid any unforeseen issues after taking over a business.
4. How are the business’ processes documented?
Taking over a business with well documented procedures and processes in place will ensure that there are very little teething problems when you take over the business.
5. What are the primary skills required to operate the business?
Discover the skills and leadership attributes that are most important to run the business. Honestly assess your current skills and see if you fit the profile. If not can they be learned or can you afford to recruit a manager with the skills to run the business.