Considering Purchasing an Existing Business?

 

“Due Diligence”……the most critical period during a business purchase is also the perfect time to call the Alaska Small Business Development Center.

When entering the phase of due diligence, a business owner turns over all balance sheets, income statements, and business tax returns to a potential buyer.  It is during this time when the buyer must take an in-depth look at the accounting practices, historical revenue, inventory management, cash flow, and profitability levels  in order to make the determination if this could the opportunity of a lifetime or a high risk road fraught with insecurity.

Luckily the SBDC is here to assist.  Financial due diligence with an SBDC advisor will enable you to create a 5 year forecasting model that will analyze  and validate all the financial, commercial, operational assumptions being made about the business and the purchase.  Concluding due diligence with the assistance of SBDC staff will provide you with the knowledge needed to make an informed decision about your financial future.  So why wait?  Test your What if now!

 

Written by Ian Grant, Assistant State Director