If real estate is included in the sale, ask to see the deed and the title insurance policy. The title should be rechecked to make sure no new encumbrances appear, and the title insurance policy will need to be updated. Also ask to see ownership documents for any cars and trucks. It's a good idea to check with the appropriate county or state offices to see if there are liens on any of the vehicles or other equipment or merchandise. Any bank lending officer, small business lawyer or accountant should be able to tell you where and how to check in your state.
Litigation Ask to see copies of any lawsuit papers and letters from any people threatening lawsuits.
Also check with the court clerk in the main counties in which business is conducted. What you're looking for are actual or threatened lawsuits involving injuries or claimed breaches of contract. This type of investigation is particularly important where you're buying the stock of a corporation, but you may also turn up information that will be valuable to an asset purchase. For example, if the business manufactures or distributes aluminum stepladders, finding product liability lawsuits pending will help you determine whether the ladders are safe or need to be redesigned. Also, remember in a few circumstances even those who purchase assets of a corporation may be held liable for the existing business's liabilities.