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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