Ask what the business has done to protect its trade secrets and other proprietary information such as customer lists. If not, and key employees leave and set up a competing business, you may be buying a lot less than you bargained for. Again, this applies primarily to a purchase of corporate stock because you want to know what tax liabilities are hanging over the head of the corporation. But whatever kind of purchase you're making, you can gain valuable information about the income and expenses of the business, including the kinds of items that have been tax-deductible in the past. Check on state and local property taxes and sales taxes, federal and state income taxes, and any special taxes levied by federal and state governments.
Leases Look carefully at all space and equipment leases.
If the lease isn't clearly assignable, check with the landlord or equipment lessor about taking over the lease. If they respond favorably, get a commitment in writing. If the business has contracts with suppliers or customers, become familiar with their terms. In the case of an asset sale, the important question is whether or not the contracts are assignable by the seller. Often, you need the consent of the supplier or customer.