Prior to the Due Diligence process (after having identified the business you intend to purchase), there are a number of important questions to ask the seller when considering a possible acquisition.
- Why are you selling the business?
- How long has the business been on the market for?
- Who knows the business is for sale (competitors, employees, customers)?
- What is the average turnover of the business?
- What are the net operating profits of the business?
- Who are the biggest competitors in the market?
- What is the business’s value proposition and unique selling points?
- What are the trends in the industry?
- What are the average industry benchmarks?
- What can a new owner do to increase profits?
- Why is the seller not implementing the answer to the previous question?
- What sort of training will be provided when taking over the business?
- What will the period of handover be, to provide support to the buyer?
- What does the seller intend to do after the sale of the business?
- Will the be willing to sign a restraint of trade?