Businesses For Sale

This is a very challenging process and to achieve a successful purchase you require good advice, planning and above all, plenty of research.

Important things to look for :-

1. How long has the business been operating?
2. The strength and history of the industry group to which it belongs
3. How long has the present owner owned the business?
4. The Vendors’ reasons for selling – this sometimes require a bit of detective work to locate the “true”reason
5. The financial trend of this business and industry group in general, is it a fading industry or is it on the ascendancy?

Buyers buy for a reason and price a business accordingly. The three factors that determine the final offer are :-

1. Return for an investment
2. Return for effort
3. Return for risk

Checklist once you have found a business :-

1. Verify the financials
2. Review staff and necessary skill sets required
3. Make sure you have enough in reserve to fund debtors and creditors
4. Check out the competition
5. Look at sales history
6. Profile the customers
7. In the case of a freehold going concern purchase, study the Section 32 and make sure he property is suitable for the purpose of future plans you may have
8. If a leasehold, get a solicitor to study the Lease for any issues that may not be obvious to a layman
9. Look at finance options to ensure that you can finance the purchase with reserves for stock and working capital
10. Engage accountants and solicitors who have experience in business transactions and if possible those who have worked  in this industry
11. Do not sign anything without first running it past your accountant and legal advisor