{"id":14032,"date":"2023-10-18T11:57:43","date_gmt":"2023-10-18T03:57:43","guid":{"rendered":"https:\/\/peronaccountants.com.au\/?p=14032"},"modified":"2023-10-18T11:57:43","modified_gmt":"2023-10-18T03:57:43","slug":"what-to-look-out-for-when-buying-a-business","status":"publish","type":"post","link":"https:\/\/peronaccountants.com.au\/what-to-look-out-for-when-buying-a-business\/","title":{"rendered":"What to look out for when buying a business"},"content":{"rendered":"
<\/p>\n
Buying an established business is a great way to enter into the business world, or to expand your existing business empire. But purchasing a company isn\u2019t something to enter into lightly.<\/p>\n
Becoming the prospective owner of a new business means doing your homework, researching the business you plan to acquire and working closely with a team of advisers.<\/p>\n
Here are five key questions to ask yourself, before entering into a deal.<\/p>\n
It\u2019s vital that you know WHY the current owner is selling. It may be that they simply want to move on to a new business venture, or retire. But they may also be trying to extricate themselves from a business that\u2019s not performing well, or has intrinsic issues.<\/p>\n
Important questions to ask will include:<\/p>\n
A common problem with both startups and established businesses is a lack of cashflow. It\u2019s possible to have a business with a reasonable customer base and ongoing sales, but for poor margins and rising operational expenses to have a negative impact on the company\u2019s finances.<\/p>\n
Before you buy, drill down into the company\u2019s finances:<\/p>\n
As the saying goes, your people are your most important business asset. So, prior to buying the business, it\u2019s important to get acquainted with the top team, management and employees.<\/p>\n
To learn more about your prospective workforce:<\/p>\n
Getting your due diligence and governance done is such an important step in your pre-purchase planning. You need to know this business is a viable enterprise, that there are no links to undesirable activities and that you\u2019re not taking on a whole load of legal issues.<\/p>\n
To make sure you\u2019re ticking all the correct governance boxes:<\/p>\n
Purchasing a well-respected brand is a great move as an entrepreneur, but you don\u2019t want to pay over the odds when agreeing on a deal. It\u2019s important to have a clear ceiling on your budget, and to stick to your guns when it comes to negotiations on price and conditions.<\/p>\n
To help secure the best price:<\/p>\n
Talk to us about planning the purchase of a business<\/strong><\/p>\n This isn\u2019t an exhaustive list. There are plenty of additional factors to think about when buying a business. Any business sale is a complex process, where working with professional advisers will help you navigate the twists and turns so you come out with a successful deal.<\/p>\n As your adviser, we can help you:<\/p>\n If you\u2019re looking to buy in the near future, come and talk to us.<\/p>\n","protected":false},"excerpt":{"rendered":" Planning on purchasing a business? We\u2019ve got five key questions for you to consider before you dive in at the deep end and complete the acquisition.\n
\n#businessadvice #SmallBusiness #M&A #businesssale #deals<\/p>\n","protected":false},"author":13,"featured_media":14034,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"acf":[],"yoast_head":"\n