Red flags when buying a business
A red flag does not always mean walk away. It means slow down, price the risk and make the right condition part of the offer.
Unverified profit
If bank statements, VAT returns and accounting records do not support the advertised profit, use the verified number or stop the process.
Owner dependence
A business where the seller holds the key customers, technical skill or daily management can lose earnings after transfer. Price in the cost of replacing that role.
Customer concentration
One customer driving a large share of revenue is a real risk unless the contract is strong and transferable.
Lease or licence uncertainty
A short lease, pending renewal or licence transfer problem can destroy value in location based or regulated sectors.
Pressure tactics
Be careful when a seller pushes for payment before documents, conditions or professional review. Good opportunities still allow proper diligence.
Next step
Use buyer alerts to wait for better matched mandates.
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This guide is general information, not legal, tax, accounting, finance or investment advice.