» Do due diligence after you sign a buy-sell agreement.
Due diligence is the process of evaluating whether the business for sale in Santa FE or Northern New Mexico is what it is presented as. Do the clients exist and how faithful have they been in paying. Is the net income, owner take, what is presented. Are the expenses claimed reality and can you maintain them? What has the track record for performance been over a number of years, at least the most recent two years? Due diligence usually covers:
- Financial health
- Historical performance
- Quality of the output
- Legal challenges
- Environmental, internal and external, challenges
- Forecasting performance based on what is found
Turn around specialists are those who buy a bad business but know in advance what they are buying, cut the right deal, and know they have the resources to bring quickly enough to reverse the downturn. Not everyone can be.