Woflfgang, to be prepared in the upcoming meeting with Wanda and her accountant, must be ready for the following ideas, issues and discussions.

Discuss briefly about how the business came into view (history)
Find out and discuss with Wanda why she is interested in selling the business
This information is helpful in determining the business’ health
Will help Wolfgang assess the difficulty of managing the business
Request for valuable files, if possible files including customer and supplier records
Helpful in the future if the purchase succeeds

The size of the business can be partially determined with this information
Request financial statements (even though it is not very well maintained) at least a comparative of the currently concluded year and the year prior to it (the tax return that Wanda made would be all right if no more other records are available).

Very important and relevant data can be found here such as sales, expenses, profits, cost of production, and net income

Also from this, the assets of the business, Wanda’s tailoring shop can be assessed, the liabilities as well and the net worth

The information contained here will be checked independently to assess its reliability and correctness
Request documents that relate to properties such as licenses and registrations
Determine if Wanda have valuable in angible assets such as licenses
Determine the legality and compliance of the tailoring shop’s existence
Discuss on the processes or internal setup of the business: How Wanda go around, prepare things in the shop, how she manages all and how she made the business successful all these years
Discuss existing and potential competitors of the business in the vicinity
Helps in pricing adjustment on the purchase if there are competitors
Discuss some restrictions regarding competition, such as Wanda not opening the same shop nearby, not working in the competitor’s shop, etc.
Request sample contracts with existing suppliers and customers, if applicable
Will be good bases for the assessment of business operation
Will be a valuable information in the future when the purchase succeeds
Discuss on the purchase agreement
Who will be responsible for drafting the contract
Who handles all the taxes and other impositions on the sale/purchase
The tentative price Wanda wants to sell the business/shop
Go around the shop to feel its ambiance and environment
Try to have some look at the existing assets like patterns and sewing machines
Inspect the room/shop location to get a feel on owning it
Discuss with Wanda if she would allow a due diligence engagement, at least from Wolfgang’s accountant and another auditor
To determine the salability and feasibility of the purchase
To independently assess the operation and profitability of the shop
To assist Wolfgang in determining the real worth of the business
To allow Wolfgang examine closely the business and compare the price that Wanda offers and
Finally to decide whether to finally purchase it or not


References
“Buying a Business.” NSW Small Business. 2008. Retrieved 28 May 2008. http://www.smallbiz.nsw.gov.au/smallbusiness/Starting+in+Business/Buying+a+Business/.