I am begining a due diligence check on a wire harness manufacturing business with the intent to purchase if everything checks out.
I am trying to find information on industry financial averages or possible pitfalls involved in buying this type of business.
This is the first business purchase for me and any help would be greatly appreciated.
The first question I would have if this is the first business you have ever purchased? What is your background in this industry? If you have limited experience in this industry, why would you consider buying any business that you have little or no experience?
I think that you need to know something about your customers, annual sales, operating cost, positive cash flow etc. I don't know how much money you are investing, however I would find a good accountant and let them do some work evaluating the company you want to purchase.