Thinking of buying a business without a broker

[Invisible Sun]

How do I make sure that I'm not going to get hit with any outstanding leins or debt from the previous owner? I'm not opposed to using a broker, but the seller is selling it by themself. Not sure what the next step should be.

[lucky]

How do I make sure that I'm not going to get hit with any outstanding leins or debt from the previous owner? I'm not opposed to using a broker, but the seller is selling it by themself. Not sure what the next step should be.
an attorney

[SB]

Go ahead and pay a lawyer for a 1-2 hour consult.
First
1. He will explain what to look for, buying stock or assets.
Then
2. He will look over the papers before you sign them.

[Ziggy]

an attorneyding ding

[Nord]

What type of biz??
Does this mean your not going to back out of your house/??

[C-2]

Attorney
CPA
P.I. for Due Diligence, or the attorney will handle the Due Diligence.
DO NOT rely on a cheap, $49.95 background investigtaion you can buy over the net. DO NOT rely on D&B or Experian.
If they get nervous or upset - then something is not right. If the business purchase is anything above $50K, do not forego any of the above.

[Tequila-John]

I am confused. Yesterday you said you wanted to back out of your house being built in AZ becasue of $$. Then today you are talking about buying a business? Hmmmmm

[Big Kahunaa]

he also said he has to change jobs so mabey this is it

[core attitude]

Any competent escrow will walk you through this and help cover your butt............brokered or not, I wouldn't forgo escrowing the purchase.
Pete

[Invisible Sun]

he also said he has to change jobs so mabey this is it
Bingo!
Trying to put the money that I was going to put down on the house and try and buy myself a job.
I found a Smog test only shop for sale. The business fits what I'm looking for right now. NO heavy lifting or strenuous activity. It's actually an absentee run shop at the moment with 1 guy doing the testing and managing day to day. The books aren't as cut and dry as I'd like them to be, but I see the potential there with very little effort.
I figured that I need to find an attorney to do this the right way. I've never been in this position, so I don't know what to expect. Can someone suggest an attorney that I can trust?
The other issue is that I've only got about 1/3 of the money. If I had it all I think it'd be a no brainer. With what I see in the way of records, I'm going to have a hard time getting the rest of the money from a bank.
S

[Invisible Sun]

Any competent escrow will walk you through this and help cover your butt............brokered or not, I wouldn't forgo escrowing the purchase.
Pete
Any sugguestions on an escrow company in so Orange County?

[Tequila-John]

Bingo!
Trying to put the money that I was going to put down on the house and try and buy myself a job.
I found a Smog test only shop for sale. The business fits what I'm looking for right now. NO heavy lifting or strenuous activity. It's actually an absentee run shop at the moment with 1 guy doing the testing and managing day to day. The books aren't as cut and dry as I'd like them to be, but I see the potential there with very little effort.
I figured that I need to find an attorney to do this the right way. I've never been in this position, so I don't know what to expect. Can someone suggest an attorney that I can trust?
The other issue is that I've only got about 1/3 of the money. If I had it all I think it'd be a no brainer. With what I see in the way of records, I'm going to have a hard time getting the rest of the money from a bank.
S
Nice, I wish you the best on your new venture

[totenhosen]

Dunn & Bradstreet report, UCC filing search, lexus Nexus report.

[soupersonic]

Any sugguestions on an escrow company in so Orange County?
I dont know of an escrow company but they can do a hold back of a certain amount of funds for a certain period of time of the sellers money to cover any unforeseen/outstanding debt he might not have remembered or disclosed.That covers your back side :D :D

[C-2]

Escrow will not do your Due Diligence, which is a fancy term for research or investigation. Escrow does not act as the buyers agent - rather, as a neutral third party who facilitates the close of the transaction.
You can do a lot of research on Due Diligence items which should be checked before you purchase a buiness, Nolo Press is also an excellent resource.
Most lenders will also require a fair share of Due Diligence research before they loan money. Be especially careful if the busines is a "dba", cuz any personal liabilities of the former owner also attach to the business.
Remember - except for the outstanding debts and some liabilities (which you will have to get from the owner/seller), you can perform your investigation without the knowledge of the seller. If it doesn't look good, then move on, the seller will never know.

[Ziggy]

Escrow will not do your Due Diligence, which is a fancy term for research or investigation. Escrow does not act as the buyers agent - rather, as a neutral third party who facilitates the close of the transaction.
You can do a lot of research on Due Diligence items which should be checked before you purchase a buiness, Nolo Press is also an excellent resource.
Most lenders will also require a fair share of Due Diligence research before they loan money. Be especially careful if the busines is a "dba", cuz any personal liabilities of the former owner also attach to the business.
Remember - except for the outstanding debts and some liabilities (which you will have to get from the owner/seller), you can perform your investigation without the knowledge of the seller. If it doesn't look good, then move on, the seller will never know.And you'll want a very close look at what a smog check station has done in its history. Tons of fraud, read of hundreds of shops fined for it in every BAR report I recieve. Absentee owner would let a tech do what he wants .....
Not trying to scare you but open your eyes to look closely.
btw---best of wishes for your health and a prosperous new future.

[Tom Brown]

The other issue is that I've only got about 1/3 of the money. If I had it all I think it'd be a no brainer. With what I see in the way of records, I'm going to have a hard time getting the rest of the money from a bank.
Why would you have a difficult time gaining the interest of a commercial lender if it's a no brainer? It it's profitable for you, it's profitable for them. If they are scared of it, perhaps you should be too.
I suspect in this case you will be well served by having a lender force you to do some research.
Good luck with your job and your health.