Business Ownership & Acquisitions
Common Issues to Review Before Acquiring a Business
Areas a buyer should examine carefully before acquiring an established operating company.
Owner dependence
If key customers, suppliers or decisions depend on the current owner, a plan for transition is essential before closing.
Working capital and cash flow
Seasonal swings, slow-paying customers and inventory needs can strain cash after closing. Understanding the normal working capital cycle avoids early surprises.
People and culture
Long-tenured employees carry knowledge that rarely appears on paper. Understanding who they are and what they need is as important as reviewing the financial statements.
Deferred investment
Equipment, facilities and systems that have been under-maintained become the new owner's responsibility. A realistic view of required investment belongs in the evaluation from the start.
This article is general information, not legal, tax or financial advice.
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