Buying an Existing Business
When in the process of buying an existing business, you should carefully analyse both the advantages and disadvantages. It is important that you get the right advice and support. There are processes and procedures around purchase that may seem a little daunting and confusing so at Beyond Business Sales we are here to help. Below is some of the information you should consider in evaluating a business.
- Good business history can increase the likelihood of a successful operation and ensure that finance is easier to obtain.
- Overestimating the goodwill figure and a poor public image inherited from the previous owner will be a disadvantage going forward.
- Vendor – reason for sale of business…. ask this question
- Sales – patterns, trends, customer base, current suppliers….. do your research
- Costs – fixed and variable costs, staff costs…. Analyse this data
- Profits – financial records, future cash flow and profitability… this data is imperative to understanding the position of the business and your likely return on investment
- Assets – identify and check all assets, including intellectual property and leasing arrangements… know what is included in the sale
- Liabilities – outstanding debts, refunds and warranties.. who is liable for these
- Purchase agreement – review carefully. ALWAYS have your Contract or purchase agreement read by a legal professional prior to signing
- Tax – GST, Capital Gains Tax, stamp duty implications… check to see if any of these will apply and the amount involved
- Legal issues – leases, business structure…. obtain professional advice
At Beyond Business Sales all the businesses that we represent for sale have this data and more available. Detailed Information Memorandums are available on each individual business to ensure you the purchaser have access to all relevant documentation and facts to allow you to evaluate the business correctly. Look to work with Brokers whom are accredited to the Real Estate Institute of Victoria (REIV) and Australian Institute of Business Brokers (AIBB) , these Brokers work under a clear code of conduct .
You should always seek professional advice and protection when looking to buy a business, we suggest that you use the services of a solicitor, accountant and business adviser.
Beyond Business Sales brokers are here to help, at Beyond we will work alongside you through the process ensuring that you have the right information and professionals to enable you to make an informed decision. Beyond Business Sales has trusted referral partners whom will offer you the same excellent service that you are used to from Beyond.
Call and speak with one of our Brokers today.
Browse our businesses for sale.