New Business Advice

[bellisima]

Hi there, I am about to exchange contracts for purchasing a beauty salon and my solicitor has found during the relevant searches that the salon is being sued by a client who claims that she suffered 1st degree burns form too hot wax which was diagnosed at accident and emergency. I know there are 2 sides to every story and im not liable but my worry is I am paying a huge sum for "Goodwill". My worry is that it is a very small town and if this were to get out if it went to court or the client bad mouthed then the goowill will be worthless and the business will go down the pan with the current owner having 50 grand out of me. Maybe im overreacting and any advice/opinions will be greatly appreciated. xx

 

[EssentialsHB]

Hi

It may make a difference, I would personally play on it and get the current owner to reduce the goodwill somewhat.

But saying that, when you take over - if you advertise that you are new and it is under new management - there should be no trouble.