"It's never too early, never too late, but sometimes it might just be too late!"

The Adventures of Buying a Restaurant

As Pablo might say, "It’s never too early, never too late, though sometimes it might just be too late!"

Why is it crucial to inspect a company before buying? Take the story of Isabel, who owned a charming little eatery called “Señoritas en Sevilla.” Confident in her restaurant experience, Isabel thought buying a similar establishment in the States would be a breeze.

She got word from a broker about a restaurant on the market that seemed perfect. Eager to seal the deal, Isabel gave it a quick once-over while pretending to be a customer. Everything looked just right, so she made an offer, haggled a bit, and signed the contract. The broker told her she had ten days for due diligence, but unfortunately, this overlapped with her Caribbean cruise. Upon her return, she reassured herself that she had seen everything she needed. The owner seemed trustworthy, so she finalized the purchase without a second thought.

However, once she took over, Isabel discovered that the chef and manager were working without proper documentation. They were promptly deported, leaving the restaurant headless and in chaos. Not only did the business falter, but it also no longer met the L-1 visa requirements for her to stay in the U.S. Isabel’s dream quickly turned into a nightmare when she received a letter from immigration titled, "Attention to Denial."

If Isabel had followed the rules for buying a business, she might have saved herself a lot of heartache. Problems often arise because buyers, especially in a foreign country, don’t know what to check. And the tight deadlines for due diligence only add to the stress.

But don’t worry! There’s a light at the end of the tunnel. Our CLASS on Business Due Diligence will guide you through solving these problems, one step at a time.

Due Diligence Tips:

• Start the process as soon as you know the name and address of the company. You can gather a lot of information from public sources.

• Time is of the essence. The seller can pull out of the deal if you don’t meet the deadlines, so stay on track.

• Bring in professional consultants, but make sure they know exactly what you need them to do. Without clear tasks and deadlines, you won’t get the information or results you need.

For more questions about buying a business call us +1 (561) 867-7697