For many would-be small business entrepreneurs the path to business ownership starts with purchasing an existing business. While you will be paying a premium for the existing business in terms of goodwill, it gives you peace of mind knowing that the business is already established.
While this is true to some extent; we believe that you still have to be extra careful when purchasing an existing business. Just because the business has been operating for several years does not mean that it is running well. There is no guarantee that you will make a good return on your investment. We have come across several situations where the buyers, particularly the first-time buyers, were blindsided by the realities of the business AFTER they had signed closing papers. That is why it is very important to spend extra time in performing due diligence before signing on that dotted line.
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