What should ask if I am interested in buying a deli?

Answer by  patti (29325)

You want to see the profit and loss statements for the past five years, and make sure all taxes and insurance payments are up-to-date. You want to engage a commercial business broker to determine the FMV based on the P&Ls, and you want to make sure you have deep pockets.

Answer by  Christopher2600 (108)

The most important thing to ask would be for the cash flow financials, bank statements, and previous years tax returns for the business to check true profitability.

Answer by  jon6 (488)

You should ask what competitors are in the area, to see the financial statements, and if you are promised a certain territory (if it is a franchise).

Answer by  jlwilson6 (1098)

The number one thing is to ask the seller for a tax clearance certificate for the business. Otherwise you might have to take over any debt that the deli has already acrued and is behind on. Do not buy it without the clearance.

Answer by  elynne (1153)

what is the market need for such a place. Am I up to the stress of running a business. What are the health laws in the community. How strictly are their enforced. Can I get the level of help that I need in this area. Can I afford the outlay to make it through until I show a profit.

Answer by  zuidlaren (53)

The price, the cost of the inventory and goodwill. Turnover and profits in the past year and if the owners are willing to stay on to assist in the transition.