<h2>BUSINESS PURCHASE-Preliminary Questions to Ask Seller</h2><ol><li>Listing of the 10 largest customers and the approximate sales thereto for the latest fiscal year.    <br />Also indicate how long each has been a customer and provide the names of any major accounts lost in the last two years with the sales volume lost therewith.</li><li>Listing of the 5 largest competitors showing name, address and estimated sales volume.</li><li>Describe facilities occupied, including approximate square footage devoted to warehouse, offices, other.    <br />Also provide a copy of any leases of personal or real property.</li><li>Provide details relating to any stockholder loans, including rate, monthly payment, term, security and purpose.</li><li>Names of any affiliated companies, i.e. other companies owned by the owners of target company or by directors, etc., and nature of such businesses.</li><li>Describe nature of employee benefit plans in effect, including information as to who is covered, approximate cost to the company, etc.</li><li>Describe nature of products sold and service activities as   is most logical to divide into major components, and approximate gross sales relating to each major component.</li><li>Describe advertising activities.</li><li>List the 5-10 largest suppliers and approximate dollar volume of purchases from each for the latest fiscal year end.</li><li>Describe any commission arrangements with in-house or with outside sales people, including any representative or distribution agreements.</li><li>Describe the nature of any pending lawsuits.</li><li>Provide names and addresses of:<ul><li>Company attorney, including name of individual responsible for work;</li><li>Company accountants, including name of individual responsible for work;</li><li>Company bank and banker;</li><li>Company insurance agency and agent.</li><li><strong><em>Contact each for checks on good standing, credit, timely return filings, etc.</em></strong></li></ul></li><li>Prepare a brief narrative history of the company, ownership changes, growth, location changes, position in the industry relative to competition, including qualitative (reputation) factors, etc.</li><li>Indicate business hours open.</li></ol>