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How To Investigate Any Business Opportunity
rity for the sellers performance. Paragraph 14 provides a means for resolving without litigation any
buyer-seller disputes that may arise from the contract.)
IN WITNESS WHEREOF, the Buyer and Seller have signed this agreement.
JAMES ROMBAUGH, SeIIer
JOE CRITSER, Buyer
Analyzing the Company's Marketing Performance
Just as important as a study of the market as a whole is a study of the position in that market of the
company under consideration and how well it has performed under existing conditions.
Location
When a brand new business is being opened, the prospective owner has some choice about location. In
buying a going concern, this is seldom possible. The seller is not likely to sell the assets of the firm with
the understanding that the buyer will find other premises. Neither is it likely that the buyer will acquire the
assets and then seek other quarters in which to operate.
Location, then, remains as it is at the time of the buy-sell transaction. The buyer should give careful
thought to the location of the business he is considering, particularly in relation to the market of which it
is a part.
Questions in the Analysis of Location
1. Is there any possibility that the status of this location will change in the foreseeable future?
Urban renewal programs, for example, have a direct effect on business locations as well as on residen-
tial buildings. The buyer should look carefully into the possibility that the area will become a target for
urban development that would require him to vacate the premises. The same investigation should be
made in connection with other forms of development that might cause land condemnation or change of
status highways, flood-control projects, military uses, rezoning, and the like.
2. What specific factors should be examined in determining the desirability of the location?
The following outline suggests points that should be considered in evaluating the location of a retail
store. It can be adapted for use with other types of businesses.