Complete Guide to Buying a Business,The by Steingold Fred S. Attorney
Author:Steingold, Fred S., Attorney
Language: eng
Format: mobi
ISBN: 9781413312874
Publisher: NOLO
Published: 2011-08-17T14:00:00+00:00
Problems With Customers, Clients, and the Government
Customers and clients who have problems with a business may complain to a governmental agency that regulates such businesses, such as a state agency that issues licenses. Similarly, a governmental agency itself may have a file on a business, such as when a health department repeatedly cites a restaurant for health code violations. To the extent that such files are available for public inspection (and most are these days, thanks to freedom-of-information rules), they can reveal important information about the owner and how the business has been operated in the past. The files of the Better Business Bureau and other consumer protection agencies may contain similar information.
A business’s history of dissatisfied customers or clients—or repeated problems with the authorities—should raise a warning flag for you. Sure, if you buy the business, it will be “under new management” (as the cliché goes), but its old reputation may live on in the public mind and can drag you down. It also creates a greater likelihood that there may be future problems hiding in the woodwork.
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