15 questions to ask someone selling a business
Simply asking “Is it profitable?” is not enough. Request multi-year figures, understand adjustments and find out who actually runs daily operations.
Read guide ↗Simply asking “Is it profitable?” is not enough. Request multi-year figures, understand adjustments and find out who actually runs daily operations.
Read guide ↗A seller may attach value to twenty years of effort, while a buyer needs to justify price against future earnings and real risks.
Read guide ↗A high-turnover shop may still earn little if product margins are thin or rent and staffing costs are excessive.
Read guide ↗High EBITDA does not automatically leave enough cash to repay borrowings, renew equipment and pay a replacement manager.
Read guide ↗Two workshops with identical EBITDA may have very different values if one needs major equipment replacements while the other has recurring contracts.
Read guide ↗If claimed sales look unusually strong, request comparable evidence over several years and assess whether major customers will stay after acquisition.
Read guide ↗A café transfer may include the coffee machine but exclude stock, signage or the right to keep outdoor seating.
Read guide ↗Buying shares in the company running a restaurant is legally different from purchasing its equipment and negotiating a new lease.
Read guide ↗If an owner begins seeking buyers without preparing accounts, promising discussions may stall when basic figures are requested. Anticipate those questions.
Read guide ↗Two listings may show the same price, yet one sells company shares and the other only equipment and customers; the risk and final cost will differ.
Read guide ↗