Verify the validity of books, especially if cash is a large factor in revenue.
Seeking Advice; Buying Existing Restaurant : r/restaurantowners buying an existing restaurant
Check for outstanding bills, payroll, past litigation, or workers' compensation claims. Verify the validity of books, especially if cash
Request at least 3 years of actual tax returns; do not rely solely on internal profit and loss (P&L) statements. Verify the validity of books
Get a printout of outstanding gift cards; you will need compensation for these since you must redeem them. 2. Infrastructure & Assets
The most critical phase of the purchase is the verification of the seller's claims and the physical state of the business. 1. Financial Verification