You may experience culture clash as current employees resist changes to the operation you might like to institute. Any loans incurred for the purchase of the business as well as those arising from the previous owner's insufficient financial control and credit management policies may place pressure on cash flow and profitability. The appraised value of the business may be too high due to misrepresentation. There may be new competition entering the marketplace of which you are currently unaware. When buying an existing business, be sure that all the elements of a potentially successful operation are present.
All businesses go through cycles.
All services and products have cycles of demand. Business locations even have cycles. In some businesses, the new owner will have to compete with the reputation established by the old owner. These announcements bring in customers who might have been dissatisfied with the previous management, and will give the business a new chance. Indeed, it sometimes pays to change the name of the business for that reason.