When acquiring an existing business, which of the following is NOT a good idea?
Get answers to all key questions – particularly about the firm’s finances – in writing.
Remember that there are always other businesses for sale.
Talk to employees, suppliers and customers about their commitment to supporting the business after the acquisition.
Arrange for the seller to exit the business as soon as possible after the deal closes to avoid any conflicts about who is now in charge.
Reconstruct financials to understand how much cash the business will generate when separated from the seller’s personal finances.
