Buying a Business Like a Used Car
►EXECUTIVE SUMMARY 1) THE DEALERSHIP'S MECHANIC IS NOT YOUR MECHANIC: That 25-point inspection list they wave around? Written by a guy on the seller's payroll. Elliott's been in the room: they will laugh for hours if you take it at face value. Two hours with your own mechanic changes the whole deal. 2) THERE'S NO RETURN LINE AT THE BUSINESS BUYING SHOP: Drive a used car off the lot and it's yours, rust and all. Buy a business on the seller's story and it's the same transaction with two more commas. No Walmart counter. No refunds. 3) "$1M PROFIT" IS A CLAIM, NOT A FACT: The seller says 20 years, never a bad month, best in the industry. Cute. You're not a forensic accountant, and he knows it. A QoE provider is your business mechanic: financials, operations, the real story, before you wire the money. 4) SOMETIMES THE RIGHT MOVE IS RUN FOR THE HILLS: A real inspection ends one of three ways: buy with confidence, cut the price, or walk. All three beat finding the accident damage after closing. People skip the mechanic every day. You've heard how those cars run.