Purchase of property
At purchase of business many think of purchase of property. The property depends
on type of got business.
Generally, the seller of business should prepare for precisely painted list.
Your problem as the potential buyer considering all components of business, is
reduced to statement of correct questions on a condition and value of business.
And except for physical property it is necessary for you to investigate
carefully other aspects of business, for example:
Be convinced of that the list of property prepared by the seller, includes all
equipment and furniture. It is necessary for you to know numbers of models and
dates of purchases.
Whether any equipment by installments is bought? Whether the guarantee operates
till now?
Whether exclusive rights to the trade mark, a method of work, an emblem will be
presented toyou?
What reputation of business in the environment of consumers and suppliers?
It is not necessary to trust in the information offered by the seller completely.
It is necessary to talk directly to clients and suppliers.
Whether exist at the owner of business of the agreement, capable to affect value
of property or to limit your freedom of actions?
For example, the property can be bought by installments. At what stage of
payments there is a business, and whether will arrange conditions you as new
owner? How business with distributive agreements and contracts with employees
are? These agreements have direct influence on value of property got by you. Be
convinced, that you well understand an essence of the agreement, and that to
these agreements will occur at change of the owner of the company.
Learn all about obligations of the given company.
It is meant it much more, than payments to suppliers. For example, in connection
with requirements on the preservation of the environment, many companies have
got obligations on clearing the and surrounding territory. If you get a site
which earlier was a place of dump of toxic waste, the account for processing of
territory borrowed by you can ruin you, even in that case if dumps occured for
long before you have got the given business.
Learn norms and the laws having direct influence on business.
Whether norms vary? Whether changes influence profitableness of business?
Whether for this reason the given business is on sale? Changes in laws and norms
can render direct influence on any type of business, from the large industrial
enterprises up to private small cafes, to influence of new requirements and
restrictions.
03.05.2007. 16:31
This article hasn't been commented yet.
Write a comment