This guide provides general educational information—not legal, tax, accounting, financial, or investment advice. Confirm material decisions with qualified professionals.
Reason for sale and transaction expectations
Ask why the owner is selling now, what a successful transaction looks like, what is included, whether real estate is involved, what transition support is available, and whether the seller would consider financing. Verify important answers through documents and third parties.
Customers, revenue, and competition
Ask how customers are acquired and retained, which relationships depend on the owner, whether contracts are transferable, how pricing is set, why customers leave, what has changed recently, and how concentrated revenue is among the largest customers.
Operations and employees
Ask what the owner does each week, who makes critical decisions, which employees are essential, what positions are open, which licenses are required, what maintenance has been deferred, and which systems or informal processes could fail during transition.
Financial performance
Ask what explains revenue and margin trends, how add-backs were calculated, which expenses may rise under new ownership, what working capital is normally required, whether inventory is current, and what major capital spending is expected.
Turn answers into follow-up requests
Record each answer, its source, and the evidence needed. A confident verbal answer is not a substitute for contracts, statements, filings, customer data, or other appropriate verification.
Primary sources and further reading
Always confirm current requirements directly with the relevant agency, lender, or professional.