How do I buy a business?
Professional help is invaluable as you go through the negotiation, valuation and purchase process when buying a business. After arranging a price you will need to finance the purchase.
Even after you reach an agreement you have to meet certain conditions of sale to complete, including: verification of financial statements, transfer of leases, and transfer of existing or new VAT registration to name a few.
What do you need to know before buying a business?
Before you go about buying a business, make sure you’re clear about what you’re doing and why. Here are just a few things to bear in mind.
Do you have the resources? – Don’t underestimate the time and money involved in buying a business. It can easily drain your current company.
Find the right business – It might pay to use a professional advisor if you want to buy a business, as they’ll find and deal with the target companies for you.
Watch out for nasty surprises – Detailed due diligence is absolutely vital. Get up to date financial and legal information and get it professionally analysed.
Look at the management team – Who’s currently in place? Will they stay? Can they cope? And if the owner’s retiring, what will it do to the business?
Draw up a business integration plan – Combining a new business with your existing company is never easy so decide how you’ll make the pieces fit.
There are many other things to think about so our top tip is get professional advice when buying a business! It will make all the difference between a successful acquisition and a business nightmare.
