You’ve gone over the company’s financial statements with a fine-tooth comb and you’re about to make a decision on whether you want to make an offer to buy that company. Stop right there! The numbers tell you only half the story—the more obvious half. Every company has hidden assets and liabilities that, although less visible, can add substantially to the risks and benefits of acquiring the business. Here are the initial areas to check out:
Why am I buying this business?
Does it fill a real business need?
How many years will it take me to recoup the purchase price?
What is my return on investment?
Do I have the time to manage the acquired new business?
Should I have legal representation to acquire this business?
Do I feel comfortable with the documents prepared by the broker?
Laska Company performs basic duties when dealing with a buyer, or “customer”. We direct you to consult your attorney. You can expect us to provide the following customer-level services:
- Assist you in the purchase of a business using reasonable skill and care;
- Perform these acts in good faith, honesty, and fair dealing;
- Properly account for money or other property you place in our care;
- Disclose “adverse material facts” which are, or should be, within our knowledge. These include facts that would significantly affect the desirability or value of the business to a reasonable person, and facts that would indicate to a reasonable person that one of the parties cannot, or will not, complete his obligations under a contract.