A few factors to consider when buying a business

Here’s some tips when you are looking for a company that is on the market

• Decide what type of business you would like to get involved in.
• Consider working with a broker. They can guide you in the right direction
• Do due diligence on the company
• Let an expert explain the financials to you. This will tell you the companies standing.
• Are there any legal liabilities?
• Get a good understanding of the business and its industry
• Get a grip of the operations procedures
• What assets come with this company?
• Look for review on the company and consider its reputation in the marketplace.
• Where is the company located.
• What fixtures, fittings and equipment does this company have and do you need to invest more money into more equipment?
• Get a proper inventory list with every item’s value
• Can this company run its operations without its current director(s)
• Is there a management team in place?
• Is there an existing customer base that will keep the business running?
• What does the cash flow look like? (Sufficient look at the competition to pay running expenses?)
• Look for competitors and how they are doing
• Future markets for this product or service

Once you are happy and you believe you have the business that you have been looking for, the next steps are:

• Getting your funding into place
• Making an offer
• Appointing a solicitor to draft your sales agreement

Some important question to ask before committing

• Why are they selling?
• What values do I bring into this business?
• How has the seller reached the price they are looking for?
• Is this company financially stable?
• Who are the competitors and how are they doing in the marketplace?
• What is the future of the industry you are about to get involved?