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Buying / Selling a Business

DON’T GET STUCK WITH A PROBLEM BUSINESS


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.

How 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
  • Competition
  • Current and future demand for products or services
  • Relationships with customers, suppliers, employees, and other people

Over the past 20 years, I’ve helped large and small businesses analyze financials to see if a business is profitable and worth buying. And for sellers, I’ve helped to set up systems to ensure financials are backed up by substance.

Want to make sure the value of your business reflects all the hard work you’ve put into it when it’s time to sell?

Interested in buying a business and need a hand to find out if it’s really worth the selling price?

Find out whether we’re a good fit. Then book in for a chat.