Buying an established restaurant

[homily]

My husband has been offered the opportunity to buy the established restaurant he has been managing for many years. Business is steady. We are going to hire a lawyer and tax advisor if everything is kosher but we want to ask some questions of the owner first. What would you want to know? What are some of the things that you would take into consideration? What circumstances might raise a red flag for you?

If, in our running of the business, we do everything by the book, can we still be penalized for things the previous owners did?

Thanks for your input.

[AFFA]

I wish to inform you that you will attain rights which the seller is having. Thus you may not be generally liable for acts of previous owner but if your restaurant building is mortgaged or there is some other liability attached to business then you may be held liable for that as that comes along with the business. You cannot be held liable for the acts for which previous owner is personally liable. You must first look at the type of liability and then analyze liability in the light that can that be transferred or not. Further a written contract will enable you to protect your rights to a large extent.

AFF