Pennsylvania | Business Law
Legal Question
business purchase
Hello,
I am in negotiations to purchase an existing business. It is a cash business dealing with entertainment for birthday, bachelor parties, etc. (i.e. dancers).
The price of the business is to include;
1. the rights to the name
2. the rights to the current phone number
3. the cost for the current yellow page advertisement
4. repeat customers
5. a half complete web site
6. continued relations with 11 subcontractors
The current owner has very poor records, (dates & profits marked on calanders). He is willing to reveal his tax returns but being a cash business this presents the potential for hidden receipts, & I can't be positive of the actual gross income.
I'm looking for some way to verify receipts in order to make a reasonable offer without being overcharged.
I am told that there is no entertainment license owned by the business and I have no idea if one is required by the state, city, county, etc.
Also, the subcontractors are not under contract and can leave the agency at will, which can have a dramatic impact on income should they leave the new owner.
I would appreciate any advice as to what avenues to pursue and what type of professionals I should be consulting.
Thanks,
R.D.
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