Wednesday, December 13, 2006

Top 10 Things To Consider When Buying A Business

10. What is motivating the sale of the business now?
9. What makes this an attractive acquisition?
8. How realistic are the projections for the business? Are they consistent with historical performance?
7. Is there a good management team in place post closing?
6. Do I want the current owner involved going forward?
5. Does my LOI clearly communicate all pertinent deal and indemnification points?
4. Who will conduct our due diligence (internal, lawyers, accountants, market research, operational)?
3. Can I validate the add backs proposed by the seller to insure they will not be a recurring expense?
2. Is my purchase price supported by a reasonable capital structure?
1. Will I run the business as a stand alone entity or integrate it into my existing business?
Source: Chuck Emmenegger, Omnia Group,