What to Check Before Buying an Existing Business
Evaluate the future of that business based on development of new technologies. For example, a taxi permit in Canada was worth 300 to 500 thousand dollars in the past. However, since technology has developed and companies such as Uber are introduced, the value of a taxi permit has significantly decreased and practically became worthless. See if that business is under debt or not. And if it is, how much debt it has. Specially, consider the debt to the government.
There is no forbearance in such debt.
14 A business could be in debt to municipality, provincial or federal government. Seek counseling from a lawyer and examine all three types of debt.
See if there is any lawsuit against this business in any court so you would be held responsible later. According to the above reasons, I suggest you make your deal while using professional counseling. Although you have to pay for these services, it practically avoids any tremendous loss.