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Pool business in florida

What to look out for...the do's and dont's and how much should I put down

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Small Business Underwriters

Cash is king! You need to get a thorough understanding of the businesses historical cash flow. Be sure to note if the existing financials include a salary to the owner. You should add that figure back, then back out the amount that you will realistically need to pay your personal expenses.

Do.....make sure that the customer list is included.
Do....insist that the owner stay on and make introductions to key suppliers and customers.
Do...have the owner hold a note to ensure you get the support you need when you take it over.
Do...have non-compete language in your agreement (admittedly hard to enforce, but its better than nothing)

Don't....over pay. Have a professional help you determine the right price. Ensure that the business cash flow is sufficient to service the amount of debt you'll need to take on to make the purchase.
Don' afraid to walk away from the deal if something doesn't sit right. While it is an exciting venture, don't be blinded by the dollor signs that will float around in your mind. If the business fails, you will lose your investment!

Best of luck!

Aug 5, 2009

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