Buying a business as an athlete: the first review

An evidence-first worksheet for evaluating an operating business without confusing revenue with owner income.

Buying a business means evaluating what will remain after the current owner leaves. A familiar brand, attractive revenue number, or connection through a teammate is a starting point for investigation, not a reason to skip it.

Ask what you are buying

Write the proposed assets or ownership interests in plain language. Does the transaction include equipment, inventory, customer contracts, a lease, intellectual property, and working capital? Ask a lawyer to identify what transfers, what needs consent, and what obligations you could inherit.

Request evidence, not a summary slide

• Financial statements and supporting records covering several operating periods.
• A breakdown of sales by customer and the terms of important contracts.
• Staff roles, compensation, and the owner's actual weekly work.
• Equipment condition, replacement needs, and premises commitments.
• A list of debts, disputes, guarantees, and proposed transaction exclusions.

This is a preparation list, not a complete professional diligence program. Have an independent accountant reconcile the seller's earnings story with underlying records and explain adjustments.

Price in the work you cannot do

Consider a hypothetical business showing $100,000 before paying someone to replace the owner. If the replacement role costs $70,000, only $30,000 remains before other omitted costs, financing, and taxes. The example is arithmetic, not a valuation method or a forecast.

Ask whether the owner is the lead salesperson, licensed specialist, customer relationship, or emergency operator. Replacing a title is easier than replacing relationships and knowledge. Plan a handover with measurable responsibilities.

Stress-test a normal bad month

Ask how the business handles a key employee leaving, a major customer reducing orders, or equipment failing during your season. Who has decision authority? Where would additional cash come from? Model the issue before borrowing or signing a guarantee.

Keep your options distinct

The SBA's acquisition overview is a starting resource. For a branded system, use the franchise guide. If you are still deciding whether to acquire or build, return to start, buy, or partner. Your next action is to request a document list, not to make a binding commitment.