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Updated over 5 years ago,
Books on how to buy businesses
Hi folks, I wanted to reach out here to see if anyone has any books you could recommend on buying a business. While there are tons of books that I’ve read about real estate, I want to know if anyone can recommend a book on acquiring businesses. I know the fundamentals may be similar to RE however looking at a business I’m sure there’s a different way to evaluate a company. The company I’m looking to acquire is a landscape design company and wanted to have a full understanding of what to ask the owners before agreeing to purchase. A list I have put together are the following:
- Last 3 years of P&Ls (both general and detailed)
- Last 3 years business returns
- Last 3 years SCF
- Last 3 years BS
- Last 3 years general ledger
- Last 3 years worth of bank statements
- Last 3 years sales vs customer history
- Last 3 years of payroll reports
- Current lease agreement
- Other fixed monthly expenses?
- Key employee background
- Employee turnover rate
- Age and repair history of equipment if the company owns any
- Any known CAPEX needed in the near future
-Line items that can be added back such as owner draws or personal expenses (travel/meals/entertainment/etc.)
Thank you!