A number of sites exist as to LLCs and potential due diligence checklists. You may want to reference our FREE entrepreneur guide to review legal structure and formation issues.
hire a CPA and make sure the financials are audited. if possible, work within the business for a limited time to witness the true performance. finally, make sure all state/fed documents are transfered appropriately. this involves the LLC itself, any DBAs etc.
forgot something very important but rarely included....include some indemnification clause in the agreement that 1) releases you from liabilities incurred by the business prior to you buying it and 2) has the owner reimbursing you for any working capital deficiencies from the time of your diligence
i have seen some clauses that mention if income isnt within X% threshold from when the initial diligence was conducted, then the purchase can be over turned. do whatever makes you most comfortable. if the seller is confident in the business results and really wants to sell you should hvae no issues.
If a company is doing well, they won't sell. If it's doing badly, there might be outstanding debts. There's top much due diligence and it's unadvisable to buy into a LLC unless you were there from the start.
H7153
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i have seen some clauses that mention if income isnt within X% threshold from when the initial diligence was conducted, then the purchase can be over turned. do whatever makes you most comfortable. if the seller is confident in the business results and really wants to sell you should hvae no issues.
good luck