7. When Buying A Trucking Company, It’s Important To Check If There Are Any Debts Or Liabilities Still Outstanding…
This is a MUST do! Whenever you consider buying a trucking company you must know what the outstanding bills are. If you buy a business, unless specially mentioned in all legal agreements, you not only take on the good stuff, the physical aspects, and all things that make a business a business, you take on the bad things as well. Those are also the things that make a business a business. Remember the entire inventory, equipment, vehicles, property, had to be acquired somehow.
The thing with most businesses is that those items were purchased on credit. Few individuals and/or businesses have the ability to purchase everything outright. So it is extremely important to remember that you need to look into everything. Check the books, see what they owe. It is your right to know everything that was done in the name of the business before you buy it.
Source: www.best-job-interview.com
Sometimes the smaller businesses didn’t separate their private expenses from their business expenses. This can be another mixed blessing. Everything in the company’s name or bought with business funds are part of the package. But so are all the bills, such as house notes and other non-business items.
Another major concern is the financial, not just bank notes. But the creditors, who are owned money in the name of the business, still need to be paid (regardless who the owner is). Truck dealerships, mechanic shops, vendors, warehouses, employees, and everyone else needs to be paid. This includes your favorite uncle, Uncle Sam.
Once you purchase the business you could be responsible for all back taxes owed, to include penalties, interest, and late fees. So with that said, do your homework well and conduct a proper and profound research!
Source: www.harbert.auburn.edu
