Buying a business is a major decision for any buyer. To ensure that you maximise your investment it is therefore crucial that you educate yourself on the process to be certain you make the correct decisions.
Fortunately we’ve created a straightforward checklist of questions for buying an existing business, which if followed will ensure that you buy a healthy, profitable business.
Before commencing your search for a business, you should identify the areas of business that are right for you. Most buyers choose to buy a business within a sector that they already have experience in. Also consider your finances and the type of business you will be available to afford on completion following agents’, accountants and solicitors fees.
You need to understand the owner’s motivation for choosing to sell their business. The answer to this question will provide insight into the health of business.
Once you have expressed interest in a business and the seller can identify that you are seriously interested, ask the seller what they would to improve sales and profits if they were to remain in the business. This will offer insight that could potentially save you months of investigation and planning.
Forming the negotiation and due diligence stage of the buying process, this step will give you the rationale for either choosing to proceed or walk away. You and your buying team are looking to assess organisation records, financial records, physical assets, employee information, customer data and anything else that will factor into your decision making process.