The Motley Fool Discussion Boards
Personal Finances / Fools and Their Money
|Subject: Re: Buying a business as an investment||Date: 6/2/2012 3:41 PM|
|Author: jumpie||Number: 15270 of 15376|
> You need at least an attorney and a CPA to help you evaluate the
> business in their different areas of expertise. If you want a
> financial planner to help with investment questions, those
> questions aren't going to be answered by the attorney or the CPA.
Fair enough. My research seems to be telling me the same thing. Thanks.
> First question I'd have - if the business really is expected to
> continue to throw off the kind of income that it is currently
> generating, why does he want to sell?
As I first started researching businesses for sale (online), I shared your concern, but this appears to be standard pricing for small business sales - the asking price is usually 2 to 4 times the net profit.
In this case, as I said, it's a friend I'd be buying out, so there's less risk in that I know why he's selling (when it's a stranger, you have to take a leap of faith that they are really selling for the stated reasons).
> Have you seen the tax returns to confirm it's actual