• Have I accurately ascertained why the seller desires to sell?
  • What should be in the non-disclosure agreement and/or letter of intent?
  • What difference will it make if stock or membership units are purchased instead of assets?
  • Have I properly analyzed the prior balance sheets and income statements, including gross profit margins, net income or loss margins, year-to-year sales and expenses?
  • How do I determine if the company has the assets and sales reflected on the financial statements?
  • What assets exist that are not reflected on the balance sheet and what assets are on the balance sheet that are not worth the stated book value?
  • Are all taxes current including payroll, income, sales (including purchase price sales taxes), and property taxes?
  • Is there any potential litigation or are there any disputes with vendors, customers or employees?
  • Are there any “unanticipated” declines in sales around the corner?
  • How do I find out if any problems exist with the land, buildings, or leases?
  • Is the existing workforce stable and how will they react with a new owner?
  • Are there any key employees who must be “sold” with the business and retained?
  • Are there any problems with the contracts I am purchasing; are they assumable?
  • See the Checklist for Starting a New Business for applicable items.