The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

Do I need to bring my own people in to assess if the sellers are being honest about financial claims, or does

I've seen a few listings here which I am VERY interested in, if the owners are on the level. I know the finance company will probably check this information out as well of course.

No User Photo

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., "www.mywebsite.com"

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, or to rant about personal issues. It's all in the guidelines.

Submit Your Answer
Answers (4)
No User Photo

We are financial consultants to a group of investors whom we have their consent to manage their funds which is in our custody for cooperation in joint venture business investments.

Our areas of interest include Property Development and real estate, Health Care, Education and training, Mining and exploration, Energy, oil and gas,Technology, Software development, Agriculture, Manufacturing, Finance Services and Leisure.However, all viable proposals within reason will be considered.

Funds shall be made available to you as a direct investment loan at 3% interest rate per annual for a period of 2 or 30 years depending on what you prefer. You may contact us if you have interesting investment proposal for possible business collaboration for our study.

We look forward to your reply to enable us provide you with details or you may visit our website.

Kindly acknowledge receipt of email.

Thank you.

Yours Sincerely
Jesse Peterson
phone: (980) 239-7539
email: info@interventionmortgagefirm.com
web: http://www.interventionmortgagefirm.com/

Jul 5, 2017
No User Photo
Signal Hill Holdings, LLC
General Partner
CT

Yes. It's called due diligence and you will need to arrange a review of the seller's books and records, among other things, when the time comes. You can hire a person to do the due diligence or you can do it yourself(not recommended in most cases). I have done it both ways and arguably doing it myself was equal to not doing it at all. That said, DD is by no means foolproof, and buyers often overlook the negative findings. "A bartender knows 50 ways to steal from an owner, but the owner knows all 49 of them"

Dec 14, 2015
William Bruce, ABI
William Bruce Business Sales & Acquisiti
Baldwin County, AL
Premium Broker

Jacob:

I've written a 67-page booklet entitled "How to Buy a Business in a Safe and Organized Way." It walks you through a logical step-by-step process for buying a business to make sure there are no surprises at the end.

To request a copy, email me at Will@WilliamBruce.org. I'll send you a digital copy.

William Bruce, President
American Business Brokers Association
www.WilliamBruce.org

Dec 5, 2015
No User Photo
The BAF Group LLC
MD

When you apply for a loan – and I assume you are talking about an SBA-backed loan application – you will be asked to supply the last three years of tax returns from the business you are attempting to purchase. For the most part, the bank will do nothing more than to request information from the IRS that suggests that the tax returns you supplied match what the seller has filed with the IRS. Any further "due diligence" of the seller's financial records would be left up to you and your CPA. Depending upon the business, this can be an easy task or very difficult one. If for example you are dealing with something that accepts only credit cards and checks, Revenue is theoretically very easy to track. If, on the other hand you are dealing with a coin laundry, a convenience store or perhaps a restaurant, many payments can be made with cash and are then difficult, if not impossible to completely validate. This is where a good CPA is worth his/her weight in gold.

Dec 2, 2015

Start a Discussion