Business Acquistions

Anyone who is considering purchasing an existing business should thouroughly research the business from a financial and non-financial perspective and give consideration as to whether it is the right type of business for you.

As a prospective business owner you should always seek expert accounting and legal advice before progressing too far.

Some important considerations are:

  • Vendor – reason for sale of business
  • Asking price – Is it consistent with sales and earnings history and how does it compare to independent business valuation or appraisal?
  • Sales – patterns, trends, customer base, current suppliers
  • Costs – fixed and variable costs, staff costs
  • Profits – analyse financial records, future cash flow and profitability
  • Assets – identify and check all assets, including intellectual property and leasing arrangements
  • Liabilities – outstanding debts, refunds and warranties
  • Purchase agreement – review carefully
  • Tax – GST, Capital Gains Tax, stamp duty implications
  • Legal issues – leases, business structure.
  • Working capital requirements – you need to ensure you have enough cash
  • Finance – what security can you offer the bank?
  • Budgeting – an important consideration before you start trading

If you are interested in acquiring a new or existing business, including a franchise, and would like an independent assessment, appraisal or valuation, please do not hesitate to contact Brett or Matt on (02) 9531-0922.