The Money Mustache Community
Learning, Sharing, and Teaching => Entrepreneurship => Topic started by: centastic on November 24, 2018, 06:59:30 PM
-
Hi - anyone have a suggestion for a general list of things I should be looking out for when evaluating a small business for purchase?
eg
- large unexplained increases/decreases in YOY costs or revenue
- a decrease in electricity cost that cannot be explained by low-energy lighting/solar (could be an indicator of less being produced)
- revenue growth YOY of "inflation plus 6%" is good growth for a bricks-and-mortar business with no online sales.
- verify with tax records
etc.
Often irregularities will jump out at me, but I don't have a list that I go down and check things off but I imagine there is something out there.
The business I'm currently evaluating and fulfills maintenence contracts for specialised equipment organisations.