Do you think that I asked an unreasonable question to business broker?
This is first time I plan to purchase Existing Business.I found the business of a reasonable price on the Internet and I contacted the broker. The broker sent Confidential Agreement to me, so I signed it immediately and sent it back to him.
He sent me P&L record for one year. I wanted information a little more, So I asked him "please send P&L and Tax record for three years". but he didn't answer. next day, I called his cell but he said "that business was closed". I can't believe what he said. Maybe he doesn't want to sell the business to me.
After all, My question, 'P&L and Tax record for three years' are unreasonable question to business broker?
- TrishLv 67 years agoFavorite Answer
I think you should be thankful that you dodged a bullet, and congratulate yourself on asking the right questions.
It is perfectly appropriate to ask for three years' financial records before purchasing a business, or even making a loan to one. If there were an innocent reason for being unable to provide this information (such as that the business has only existed for one year), he would have told you that, without hesitation. He was trying to hide something from you. you don't want to do business with him.
- HenryLv 77 years ago
If the business is closed, where is he going to get 3 years worth of records?