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Q: If you were buying a business what would you look for in a company's financial statements?
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Westlake Financial offers a variety of financial products such as: personal and business loans, portfolio buying services, business financing options for dealerships.


Is it possible for me to buy someone else's small business?

In your case, you have to pass the legal process of buying a small business that you want to have though it is less risky than starting from scratch. There will be a broker that needs to find out about your skills and interests, then helps you select the right business for you. Then negotiate. It is really when brokers earn their keep. To get an idea of the company's anticipated returns and future financial needs, ask the business owner to show you projected financial statements.


Is it acceptable practice to use unaudited reports for financial analysis?

You can analyze un-audited financial statements, buy you have to keep in mind that your ratio analysis, vertical analysis, and comparative analysis may be (probably are) inaccurate as to the companies 'real' financial position. You'd have to take any un-audited analysis results with a grain of salt. If you're buying a business, the seller should pay for the audit, or make sure there has been an audit of the statements in the past 2-3 years atleast so you can work with something real.


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You are best advised to consult with your financial counselor, with whom you should review the financial statements and recent audits of the association, as well as an association-savvy attorney, with whom you should review the governing documents, including recent board meeting minutes, to confirm that the association into which you are buying is financially healthy and well managed.


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It is advisable that you research into the type of business and review copies of the business's certified financial records. You should also look at the cash flow, balance sheet and accounts payable and receivable.


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Financial services in marketing tend to almost borderline business to business. Many prospects in the financial marketing channel tend to be of higher education with a need for more hard fact data presented to them in the communications. They are less swayed by emotional depictions conveyed more commonly in traditional consumer marketing. Impulse buying is not as common in this channel either.


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