They say the cream rises to the top.
And especially in a recession buyers tend to look to quality. Some questions to ask.
- Can the business be scaled beyond any real or perceived dependence on the owner?
- Does the business have its own proprietory products or services?
- Is there a strong management team which will stay on after a sale?
- Does the company have a defensible niche in the market?
- What about the customer base, how long have they been trading with the company - is there a good story on customer retention?
- Is the businses model underpinned by recurring revenue streams?
- Does the busines have growth opportunities?
- Are operating margins strong, and are they holding up?
- What risks does the businss face and are they manageable?
- Are the accounts in good shape, and does the businesas have good systems?