Buying a business on contract

Buying a business contract - Contract should give the buyer a period of time (such as 30 to 60 days) to review the business along with the right to cancel the deal if the owner said something untrue or if the buyer finds something not seen when the contract was signed. Contracts allow the buyer to cancel the deal if there is a major change in the seller's finances or if any of the financial statements were wrong between the date the contract is signed and the date of the closing. Regardless of whether the deal is structured as an asset transaction, a stock transaction, or a merger, make sure you know what you are getting into by requiring detailed information from the seller regarding its business operations and finances. If it seems like you need the consent or approval of someone after taking over the business, state in the contract that you can cancel the deal if there is no consent or approval.