10 Questions to Ask Before Committing to a Business Acquisition

Acquiring a business can be an exciting way to expand your portfolio, diversify your revenue streams, or enter a new market. However, it’s not a decision to take lightly. In my years of working with entrepreneurs and investors, I’ve found that asking the right questions during the evaluation process can make or break the success of an acquisition. These ten questions will guide you through assessing whether a potential business purchase aligns with your goals and whether it’s worth the investment. 1. Why Is the Business for Sale? Understanding why the owner wants to sell is the first critical step. Sellers might have valid reasons like retirement, a desire to pivot into another industry, or personal health issues. However, a declining revenue trend, market saturation, or unresolved operational issues could be red flags. Ask for transparency and observe their willingness to share details. If the reasons seem unclear or overly vague, dig deeper. A seller who is upfront about their motiva...