Ensure complete due diligence is done
before any purchase or sale
Understand what you need to prepare to
get you the best offer
Gain a full picture of financials and
other aspects of the business for better decision making
Buying a business
Have you ever bought
a second-hand car from someone you didn't know?
A common experience is to be wowed at the sales yard by sweet-talking salespeople paid a handsome commission for selling lemons.
would you avoid this experience?
You could bring a list of items to check. Even better, bring a mechanic with you.
Buying a business is a similar process to buying a car - on a more significant scale.
When buying a business, doing due diligence is crucial to avoid buying a lemon. You could check websites that tell you what to watch out for. And for such a significant purchase, you may get professional help.
Like slick used-car salespeople, the financials of a business can also present a good front - while hiding underlying problems.
On the other side of the fence, selling a business is about showing prospects you have a solid business - one worth paying top dollar for.
Selling a business
How much is a business worth?
This isn’t a trick question – but it certainly doesn’t have a clear, defined answer either.
What does need an answer is this:
What are you doing to make sure all your hard work will pay off when it comes time to sell?
And this is where I can help:
You see, what will help maximise the value of any business is a strong, consistent and accurate reporting structure.
This can show the performance of a business - from a historical and current perspective. And also showing projections of future performance underpinned by robust facts and assumptions.
A sale may be a distant object on the horizon, but an opportunity may arise at any time.
An investment in your business now could provide a substantial return in the future in terms of business valuation. It’s important to plan and be prepared.
In addition, I’ll also help you see how the non-financial aspects of the business affect the overall value of your business, such as:
- Strong credit history with suppliers
- Employee skills, pay, and loyalty
- Legal issues
- Not depending on one or two major customers, suppliers, or employees to run the business
- Current and future demand for products or services
- Relationships with customers, suppliers, employees, and other people