bluehat9

Definitely listen to this person

You shouldn’t have mentioned that I guess, because he probably wouldn’t have stipulated that and it seems pretty strange…then again if he’s providing financing he can protect the collateral with whatever covenants he sees fit.

You’d have to think of the money you think you’ll be able to make and consider if it’s worth it. With financing, you’d want to feel confident the business will generate enough excess cash to cover the note, the eventual balloon payment if there is one, and leave enough left over that it seems worth it to you. You’d need to take on all the tasks the current owner handles.

They’ll probably want a ridiculously high price.

Not sure about Australia, but governmental projects where I am are subject to public information requests. Maybe you can look at some recent government projects and get an idea. Otherwise, probably consultants.

I wouldn’t underestimate the exposure to many different businesses and their financials. When you do accounting or audit work, you learn how companies work. You get to see which ones seem to be insanely profitable, for instance.

Understand your principles, maybe write them down, and don’t waver. The problem is when you let the money become more important than your principles.