1. Assume the role of a prospective buyer for these two businesses. How would you conduct the due diligence necessary to determine whether they would be good investments?
2. Do you notice any red flags or potential sticking points in either of these deals? Explain.

Robert Carlson started Country Lanes North, a 24-lane bowling alley in Duluth, Minnesota, in 1976 with two partners. Carlson gradually bought out his partners and brought his two sons into the business as owners. Scott Carlson, who began working at the bowling alley in high school, took over the management of Country Lanes when his father semiretired in the late 1990s. Scott has considered borrowing the money to buy out his father and his brother so that he can have sole ownership of the business, but tight financial markets are making it difficult to find the necessary capital. “I have always worked for my father,” says Scott. “Now it’s time to cash out and let him enjoy his retirement.”