You must decide what buying an existing business will do for you and how that would compare with opening your own. Will it save you money because it is already built out and equipped or are things outdated and in need of replacement or repair? Is everything up to current code or will the change in ownership trigger the need for additional repairs? If so, how much will it cost? Is the location grandfathered? Does that grandfathering transfer to you? A simple stop at the city building department should give you a good idea about what to expect.

You must look at the accounting and appointment books for the business to see what the clients are buying and break this down to percentages. If 30 percent of the income of the business is brought in by a particular therapist and they leave, what have you bought? See if there is an income pattern; they may have had a great year last year but not consistent annually. Or summers generate a lot of business and it dies in the winters. You will want to know what you can depend upon in terms of income. However, you will not be able to pin it down exactly because past performance is only speculation of future earning.

Consider not making unnecessary changes to the décor until the clients have become comfortable with the new ownership. You will want a new lease. If you make the lease payments to the tenant of record and he/she does not forward it to the property owner, you could face eviction. As a sublessee, you’re subject to eviction by both the tenant of record and the property owner. However, if rents have gone up and the existing lease has excellent terms, it may be a good reason to sublease as opposed to a new lease with higher lease terms. You could arrange to bypass the tenant of record and pay directly to the property owner. Make sure the tenant of record signs a sublease agreement and the property owner has okayed it with a signature.

What comes with the business? Be sure that the website and phone numbers are included and any e-mail addresses and all intellectual property, such as art work, brochures and logos. Consider getting a non-competition agreement with the owner and asking them to stay on until you have become established with the clients and are familiar with how this particular business functions. Make sure you’re not buying any of the business’s debts and that they have been considered in your calculations. If the business spent 25% of its income on advertising or perks to entice clients in, you want to know about it. Be sure to contact an attorney to look over your agreement in case there is something you’re not seeing. The seller may ask you to pay extra for “goodwill.” Goodwill is intangible and includes things like the business reputation and clients. There is no guarantee the clients will continue on, so if you decide to pay anything for the good will, make sure it can be justified.

It is best to keep the original workers at least for the time being. You do not want to get rid of a valuable business asset.