How do I verify an absentee-owner listing?

A listing that says absentee owner is telling you the business runs without the seller. That may be true, partly true or only true on paper. You will not know until you look. The checks below test that single claim on one listing. They work best when you ask for the records first and then compare them with what the seller and staff say.

Does the profit already pay a manager?

Find out whether the earnings shown include a real wage for the person running the business. If the seller is the manager but takes no wage, the figures leave out a cost you will have to pay. Ask your accountant to adjust the statements to show a hired manager’s pay, then see what remains. The normalizing owner salary page explains the idea.

How many hours does the owner really work?

Ask the seller to list the tasks they do in a typical week and how long each takes. Compare that with what the manager and staff say separately. Look for hidden jobs: ordering, scheduling, handling complaints, covering shifts. A seller who says the business is hands-off but answers calls at all hours is giving you two different pictures.

Who holds the relationships?

Check whose name is on the main supplier terms, the biggest customer accounts and the bank relationship. If these sit with the owner, they may not pass to a manager or to you without effort. Ask to meet the key people during the sale, with the seller’s consent.

How long has the manager been in charge?

A manager who has run the business without the owner for a good stretch is evidence. A manager hired shortly before the listing is only a promise. Ask for tenure, results over that period and what happens if the manager leaves.