Buying a business in trouble

First, the short answer: either stay away from this one and start a new business on your own; or, buy just the company's assets that you can use.

For example, you might consider buying:

1. The Tradename (if it has not been tarnished in the marketplace).

2. The Client List/Accounts (if any are left and they have no claims against the company).

3. The Equipment (but exercise caution here, because a troubled company usually does not adequately maintain its equipment, and there might be financial liens against these assets).

Often, buying a business in trouble can be a great opportunity. The answer depends on how much - and what kind - of trouble it's in.

Remember, when purchasing any business, it's often good to to purchase assets, not stock. Get your attorney and CPA to help you understand this distinction.