The visit to the seller’s premises can be hugely beneficial and potentially enlightening in many ways.
Not least due to the fact that you are probably meeting the owner(s) face to face for the first time which, in itself, is very important in enabling you to start to build a rapport with them, but there are many other considerations, for example:
- The look and feel of the place – is it busy? is it welcoming? are the people friendly?
- Is there an obvious culture within the company?
- How does the owner treat the staff?
- Does the machinery and equipment look old and tired and need replacing?
- If it’s a factory or manufacturing site, is there any research and development (R&D)?
- Is there a quality control department? If so, what can you see going on there?
- Is there an identifiable key member of staff who is in control of the day to day operations?
- Is the location good for transport links and access to the motorway network?
- What is the stockholding position like – is there a lot or very little?
- Is the warehouse tidy?
- Does the building look like it is in need of repair?
- Is there room for expansion within the building or on the site, or both?
- If it’s an industrial estate, what is the site like and what is the general state of other buildings on the estate?
- Are the costs for the lease of the property reasonable for the physical size of space?
- Will the owner share more confidential information with you face to face which he/she wouldn’t have been prepared to do via an email exchange?
A visit to the seller’s premises will hopefully be a very worthwhile investment of your time but, you must be sure that you’ve spent sufficient time analysing the business beforehand to gain as much information as possible before you attend a site meeting.
Be wary of spending time on too many wild goose chases.