Have you ever gone grocery shopping without some type of shopping list? Maybe it’s written or memorized, or if you are like me, your list is typed out and organized by grocery aisle (this is not recommended for those of you who are “right brained”). While we may have some flexibility when doing grocery shopping, there is little room for error when it comes to buying a business.

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[/column][column col="1/2"]Buying a business is obviously an important decision with many moving parts. When considering whether or not to purchase a business there are many things to consider. Our due diligence checklist shown below can start you on the path to buying and operating a successful business.

Checklist for buying a business

• Company Tax Returns - last 4 years• Profit & Loss Statements - last 4 years• Current Balance Sheet and Profit & Loss Statement• Bank Statements - Last 2 years• General Ledger Detail - Past 2 years• Copy of current contracts (i.e. leases, supply agreements, jobs, etc.)• 940's & 941's payroll tax - last 4 years• Employee list, job functions, salaries and benefits• Copy of insurance policies• List of equipment that you will be purchasing

[/column]It is important that you find out all you can about the company you are buying. Depending on your industry and the nature of the purchase, there may be additional items to add to your checklist. In many cases a business purchaser will use the services of an accountant and an attorney for some due diligence process. By identifying issues in advance you will be better prepared to negotiate the final purchase contract and less likely to have disputes after the transaction has been completed.

[message_box title="Considering buying a business?" color="gray"]Our management and accounting services may be a perfect fit for helping your purchase turn into a profitable business. Let me help you review the documents from the checklist! Give me a call at (913) 254-7300 or email me at rusty@fullingmgmt.com.[/message_box]