I got a contract yesterday from another broker. Contract accepted, everything fine. Then the following day an email from an adviser (not an accountant, not a lawyer) but a professional I do respect making a statement to the buyer that they should not make an offer till they see the tax returns of a business.
That initiated a series of calls explaining why that was incorrect and why the buying process ( http://www.businesses4saleorlando.com/buy ) is what it is. The respected adviser (who is not an accountant and not a trained value expert stated “look up due diligence in Websters! ”
Straw man logic aside there was no sense in pursuing an argument with someone who has made themselves the expert in a field they are not practicing in.
But I want all of you (if any of you ever do read my stuff) to look at my buy link provided prior in paragraph 2 and or on the buy tab of my site, to listen to the logic here.
1. Buying a business is scary
2. Know what you don’t know and hire professionals who do
3. Make sure you CONTROL your professionals and they stay in their field of expertise (you would not hire a dentist to do open heart surgery)
4. Get educated….that means interviewing experts, reviewing several businesses in a category you like so you understand the KPI (key performance indicators) and corresponding margins to each (financials don’t tell the story sorry to say) and educate yourself.
5. Meet the people face to face
6. Hire accountants that know the category your buying ( an accountant from London that has done your taxes is not competent to look at a business in Orlando Florida). They can assist but they should seek assistance from professionals in the area with industry knowledge.
Here endeth the lesson