New Jersey Business Brokers: Article About Business Walk Through Checklist
The final walk through of the business you are purchasing takes place before signing your closing documents. Your agent and possibly the seller's agent will accompany you as you visually inspect the premises to make sure that all of the assets listed on the seller memorandum or subsequent legal documents are in place. If the business is a large one or has a production area, a walk through can be a daunting task. However, prepare in advance by making a checklist and working your way through it when you are on-site. Your New Jersey business brokers can help compile your list.
Ask your broker to schedule your walk through after hours or on the weekend when employees are not present. This allows you to concentrate on the task at hand without distractions. If you plan to retain staff members, schedule meetings separately so that you can give them your full attention.
If you will be staying in the current business location, check the area for any safety issues that need to be addressed before you take the reins. For example, make sure that no structural issues will require your immediate attention. Verify that the workspace complies with OSHA regulations. If you identify problems, have your agent seek resolution before closing. Otherwise, you could be liable for resulting accidents or injuries.
Identify and check over each piece of equipment listed as a business asset.
The business brokers from Selby Associates of New Jersey would be happy to answer any question you have about business mergers or buying a business.
If the equipment is fairly specialized or technical in nature, bring along an expert to offer a quick evaluation. At the least, make sure that all pieces of equipment are present and in working order.
Locate and look over any office furnishings and equipment itemized on your list of assets. If you are unable to locate any important items, make a note so that your broker can inquire about them later. Also note any items that are not in the condition described in the asset list. Because the walk through is your final chance to confirm the value of the assets for sale, it is critical that you bring up any deficiencies for negotiation before signing your agreement.
If the business has inventory, check the list of products on hand against what is present in the warehouse. If you see any glaring discrepancies, make a note to ask for an explanation. Even a difference of a case or two of products may indicate record keeping inaccuracies that affect overall value. A conscientious owner should have made sure that the inventory is accurate.
Even in an atmosphere of trust, your smartest strategy is making a thorough inspection of the business you are buying before sealing the deal. That includes a visual verification of tangible assets during your final walk through.