The grand adventure of acquiring a new business can quickly turn into a colossal fiasco if you don’t first conduct a thorough investigation of the company you’re considering buying.
And, while it’s likely obvious to you that a check of the company’s finances is the best place to start, so much more is required.
Investigating every aspect of a business can be a lengthy process. That’s why it’s so important to seek the advice of an attorney experienced in the process. At Lloyd Ward & Associates, we understand how to peel back the many layers of a business in order to gather the information needed to make an informed decision.
Beginning your investigation of a company as soon as you think you want to buy it allows you and your attorney to gather the right information and to know the right questions to ask.
Start by looking at the company’s finances, including accounts receivable and payables, audits, inventory, taxes and debt, and assets – but your research should never stop there. Among the many other areas that should be investigated are:
- Litigation the company may be involved in
- Terms of any leases
- Sales agreements
- Products or services offered
- Employees and employee benefits
- Environmental issues
These just scratch the surface of the areas you would be wise to investigate. When you’re considering making this major investment, going forward without the support of a good business lawyer is a risk no one can afford to take.