BUSINESS PURCHASE-A Business Checklist of Questions to Ask the Seller

1. Listing of the 10 largest customers and the approximate sales thereto for the latest fiscal year.
   Also indicate how long each has been a customer and provide the names of any major accounts lost in the last two years with the sales volume lost therewith.
2. Listing of the 5 largest competitors showing name, address and estimated sales volume.
3. Describe facilities occupied, including approximate square footage devoted to warehouse, offices, other.
   Also provide a copy of any leases of personal or real property.
4. Provide details relating to any stockholder loans, including rate, monthly payment, term, security and purpose.
5. Names of any affiliated companies, i.e. other companies owned by the owners of target company or by directors, etc., and nature of such businesses.
6. Describe nature of employee benefit plans in effect, including information as to who is covered, approximate cost to the company, etc.
7. Describe nature of products sold and service activities as   is most logical to divide into major components, and approximate gross sales relating to each major component.
8. Describe advertising activities.
9. List the 5-10 largest suppliers and approximate dollar volume of purchases from each for the latest fiscal year end.
10. Describe any commission arrangements with in-house or with outside sales people, including any representative or distribution agreements.
11. Describe the nature of any pending lawsuits.
12. Provide names and addresses of:
    • Company attorney, including name of individual responsible for work;
    • Company accountants, including name of individual responsible for work;
    • Company bank and banker;
    • Company insurance agency and agent.
    • Contact each for checks on good standing, credit, timely return filings, etc.
13. Prepare a brief narrative history of the company, ownership changes, growth, location changes, position in the industry relative to competition, including qualitative (reputation) factors, etc.
14. Indicate business hours open.