Buying an existing business: The value of a reputation

Good will is the perceived image of a business and it can extend far into the community. It can also affect many key relationships, including those with bankers, suppliers and customers. A good image is invaluable; a negative image is almost irreversible. Make sure you know the company's reputation by asking questions around town.

Suppliers are a critical link in the process of ownership takeover. Even if the current owner has a good relationship with his suppliers, you will have to contact them to provide the details they need to establish a clear image of who you are and how reliable you will be in making payments.