"When someone is trying to buy a small business in California, he or she usually wants the opportunity to examine the books closely in order to make sure the seller's claims about the company's performance are accurate. The majority of buyers understand that once there is an agreement in writing, the buyer will be permitted to meet with the seller's accountant to look at the books.
This is important in the due diligence part of a transaction. Many buyers are not aware, however, of the ways the seller might present the company in a manner that passes quick inspection, but does not readily reveal some of the problems with the business.
Among those issues to look out for are:
1. Cost of goods statement does not accurately reflect what is happening."
Read more at:
Uncover Hidden Problems In Due Diligence When You Buy A Small Business In The California Marketplace | BizBen.com:
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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