Don't brokers where you are usually have audited figures on the profit the business makes?
In any case, ask for the figures and get your accountant to look at them. Verify them with a look at the bank/CC deposits each week/day. Some business operators will take the cash for years and deposit the rest, then towards the time they want to sell, they start depositing everything to make the business look a better buy. Lots of SB operators do this, but it rings bells with the IRS/Taxation office, it can result in scrutiny of the business if big noticeable amounts are involved.
Get the figures for as far back as you can, check the ratios between cash and check deposits over time. That tells you if they've been ummm... 'spiriting it away'.
As far as guarantees go, I don't think BB's (business brokers) do any guarantees. One of my friends is a BB and she's been doing it for a long time. Once you buy, there's very little comeback, unless the figures are fraudulent, but getting your money back might be tough - it'd mean going to court possibly.
By the way every Tax Department everywhere does studies on the cash/check/CC ratios that typical businesses make.
If it's a retail business, do a customer count. Traffic patterns alter. Also ask the seller why they are selling. It's important. If the reason is not sincere they may be hiding something - like the knowledge of a competitor starting up soon, or some changed condition that might upset the business.
Ask how long the business has been up for sale (this time, and any previous time) Smart BB's will remove it from sale for a while if it's not selling and then later put it up again so they can say it's been on the market only a short time.
What style of business are you looking for?
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