Questions To Ask The Seller Of A Business

Here is a checklist of questions for a buyer to ask the seller of a business and in this order:

1. How the market operates? Get the broad picture initially by learning about the market place of the business, how its product is facing up to competition. Get the competitor profile, growth rate in the market and whether the business is beating the market or just following it. You can also find out latest market trends.

2. Who are customers & suppliers? Ask the buyer to talk about his customers and suppliers. Some of them may be known to you. It is better to a dwell little more here not the least because you want a lot of names but to assess how critical they are, in terms of volume and value. Also you must ask the buyer about credit terms offered and obtained. Will these terms continue to be in force once the business changes hands is yet another clarification you need.

3. Who is the staff? Number of staff, the gross emoluments and their experience should engage your attention. Key members and how important they are is also a relevant question. Will the staff be happy to get a new owner? Ostensibly, their cooperation is vital for the sale and transition to new owner. Staff is, in essence, in every business which is of course not saying a lot. Read more of this post