Questions when buying an existing business

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Pergo

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I am in the process of hopefully buying a landscaping business which has been going for 5 years. I will lease the land that the plants grow on and purchase all the equipment and stock plants etc.. plus will have 3 people working for me. Currently business is not vat registered so this will have to be done. I am meeting the guy for the third time this Thursday to ask him some more questions and I was wondering if someone had any ideas on what specific questions I could ask. Thanks in advance for your help. Should this all go ahead I can see myself coming back over time asking for more help thanks again and keep up the good work the site is brilliant.
 
Find an accountant to look over the books. If you can find one that works with companies in this field :D then all the better.
 
I don't think the current owner would be vert forthcoming with his books. Make sure he doesn't owe people any money or owe anything for the machines that you are buying
 
If you are buying a business you need to see the books. If they won't show then don't buy.
 
He will be showing me the books so that side should be ok. I also need to know about borrowing is it better to get a business loan or should I increase my mortgage or us some of my savings?
 
OK well thanks for the advie to be honest I would have expected more questions to turn up to be asked. I have the meeting on Saturday and hopefully all will go well.
 
if there are existing employees I'd make sure they're all regularised,
make sure paye, prsi etc is up to date,

I'd also ask about whether you've to provide a prsa option and the costs to you.
I'd also want to know about their severance payment rights, eg, some might have built up rights for 5 yrs if they're with current owner since start, X whatever no of weeks statutory redundancy.
Make sure you know their agreement on holidays and bank/public holidays, sick pay, maternity, holiday pay etc and that it's all in the current books and calculations.

check out if there are employee disciplinary procedures and health and safety requirements in place.

I might be a bit of a worrier, so maybe not all the above apply, but best to make sure. hope it helps
 
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