As millions of baby boomers retire over the next decade many will sell their businesses. That means the next few years will provide ample opportunities for people who are interested in buying a business and becoming an entrepreneur. Although this decision offers many exciting benefits, it also has significant risks, and individuals considering a commercial acquisition must ask the right questions to determine whether to pursue a deal. Zoellner Garten & Company in Cincinnati, OH, has been helping people buy and sell businesses since 1988 and shares a few vital considerations. 

3 Questions to Ask Before Buying a Business

1. Am I Ready to Make This Commitment?

Buying a business is not as easy as starting a new job — it requires substantial investments of money and time. You also must take on many new responsibilities, such as hiring employees, handling payroll and taxes, and marketing the enterprise. Potential buyers should reconcile themselves with the realities of owning a company before taking the plunge. Determine your daily and weekly commitments to the company and decide if you’re ready to meet them.

2. Will It Provide a Good Financial Return?

Prospective buyers must ensure they will get an excellent return on their investment. This depends in part on whether they plan to handle the day-to-day business operations or be a hands-off owner. Meet with an accountant or financial analyst to run the numbers and determine if the endeavor is worth your while. 

3. Do I Understand the Company's Financial History?

Prospective business owners have many financial considerations beyond revenue and overhead. Research whether the company’s current owner has had issues with state or federal tax agencies and if they could affect the company going forward. Check for financial easements and rights of way that could impact the future viability of the business. 

Zoellner Garten & Company understands the ins and outs of selling and buying a business in the greater Cincinnati area. They know the intricacies of a company acquisition and will help you grasp them. Their mergers and acquisitions team specializes in manufacturing, distribution, retail, and franchising, having helped hundreds of businesses in these industries change hands. Visit their website to learn more about the advantages of working with them and call (513) 852-2400 to arrange a consultation. Check their Facebook page for more advice from their business appraisal experts.