Buying a business · free guide
Questions to ask before buying a business
Ask questions that force documents, not slogans. If the answer cannot be shown, treat it as unknown risk.
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Before ClausePrep
The story is exciting. The broker book looks clean. FOMO says close before someone else does.
After ClausePrep
You buy cash quality, not a story. You know what would kill the thesis — and you can walk without self-doubt.
Questions that surface truth
- Can we reconcile revenue to bank deposits for 36 months?
- Who are the top customers and what would happen if one left?
- Which expenses are personal add-backs that would return under me?
- What does the seller do day to day that is not written down?
- What capital spending was deferred in the last two years?
People questions
Which employees are critical? Are any family on non-market pay? Who might quit at announcement?
Legal and ops questions
Pending claims, license transfers, landlord consent, and software ownership all decide whether day one works.
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Buying a business · Step 1 of 3
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Questions
Will sellers share customer names early?
Often only after LOI or with protections. Concentration stats can still come earlier.
How many questions is too many?
Organized diligence is expected. A random flood without a data room process is not.
Educational content only. ClausePrep is not a law firm and does not provide legal advice. For material decisions, consult a licensed professional in your jurisdiction.