Your friend would need to ask the owner of his business to see his past 4 years of tax records.

You didn’t say how you know all this information about the business. I think it would come down to who has studied the business more you or your friend.

You could check with the Better Business Bureau to
see if there are any complaints and check with your local City of Commerce to see if there has been any
complaints against the business. Then show this to your friend.

Somehow, you have got to make him see what you just said in your last paragraph.

If he’s got that kind of money to sink into a business venture, he needs to stop and think Okay, what do I love to do? And can I turn what I love to do into a business for myself?

Try to make him think of it this way.

hmmmm sticky one…..You really could be saving your friend alot of frustration and financial hardships……or……you could be standing in the way of realizing his/her dreams and at worse they learn and build on their enterprising adventure. I think a 3rd party business analyst would help even if it only gets a better negotiated price for the venture its worth it to have someone check the books and future market potential. If there is alot of other people interested that is a sign…if no one else is interested in buying this business that could be a warning sign if your friend ever tries to sell it.