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o Budgets, business plans or projections (for Company and any of its subsidiaries) made on a quarterly, annual or other basis during past 3 fiscal years.
4. Contracts & Leases
o Real estate leases. Consider term of lease and quality and location of space and decide whether your business needs would be satisfied;
o Equipment leases;
o Purchase and sale contracts for goods and services [uniforms; food suppliers]
5. Tax Matters
o Are back taxes owed?
o Are there any pending tax suits?
o Does any local, state or federal taxing authority have any liens against real property or business personal property you would be acquiring? If so penalties, interest and attorney’s fees could greatly increase cost of satisfying tax lien.
6. Identities of All Directors, Officers & Shareolders
o You ought to perform a background check on each of these people to see whether there is any pending litigation against them.
7. Owned Real Estate
o Need a list of owned real estate to help in valuing business and determining liabilities.
o You would want to have copies of insurance policies, as well as name and contact information for insurance agent, going back four years from time of purchasing business. Check to see whether insurance policies would cover you, as new company, for any damages alleged to have occurred before you acquired business.
Finally, many other factors related to financial and other matters must be considered before taking plunge.
Mr. Fasthoff is a commercial litigation attorney by day, and an entrepreneur in the marketing field by night. He represents corporate clients and individuals in the fields of commercial litigation; entertainment litigation; intellectual property litigation; arts law; technology law; and a wide variety of other business litigation matters.