Like he said, make sure you know what you're buying.
What does this company have that's valuable? Transferable licenses that are hard to get otherwise? Already setup selling process that's maintainable? Physical assets and inventory? Brand name that carries weight in the marketplace? Guaranteed revenues through contracts or sale orders? Employees that know the business and have a high probability of staying should you buy? Also like he said, make sure that none of the liabilities transfer over. You said no debt but does that include employee liability (retirement plans, promised bonuses, etc.)? What's the competitive landscape of this market? Also, if it is something that you can easily replicate yourself with the proper licensing and setup, you might be better off by using the money in that regard rather than paying a premium for this business. And we haven't even gotten into business profitability yet which seems to be variable at best.
Do your homework or hire someone who will. Even if it's a "no go" afterwards, it's still money well spent.
What does this company have that's valuable? Transferable licenses that are hard to get otherwise? Already setup selling process that's maintainable? Physical assets and inventory? Brand name that carries weight in the marketplace? Guaranteed revenues through contracts or sale orders? Employees that know the business and have a high probability of staying should you buy? Also like he said, make sure that none of the liabilities transfer over. You said no debt but does that include employee liability (retirement plans, promised bonuses, etc.)? What's the competitive landscape of this market? Also, if it is something that you can easily replicate yourself with the proper licensing and setup, you might be better off by using the money in that regard rather than paying a premium for this business. And we haven't even gotten into business profitability yet which seems to be variable at best.
Do your homework or hire someone who will. Even if it's a "no go" afterwards, it's still money well spent.
