Submitted by YPH on Wed, 03/05/2008 - 14:00.
When considering buying a business, some of the main questions anyone will be struggling with are: “How much risk am I taking in buying this business? Is this business really as good as what the seller says it is? Will I be getting the cash flow I want from this investment?”
The notion of risk is very subjective. It includes the fear of not being capable of facing situations one has never experienced before, the fear of discovering hidden defaults, the fear of unfavorable outside factors that will adversely impact the business. So when buying a business that is totally is new to me and if I had not so far had been taking too many risks in my life my fear factor is likely to go higher than if I have already bought and sold two similar businesses.