Do your home­work be­fore you buy Buy­ing a busi­ness is a big de­ci­sion — gather in­for­ma­tion first

CHB Mail - - Gardening -

By AMY HAMIL­TON Crowe Hor­wath

Look­ing to com­ple­ment your cur­rent busi­ness/farm­ing port­fo­lio is an ex­cit­ing po­si­tion to be in and can also be one of the big­gest de­ci­sions.

It is likely you will be in­vest­ing a large amount of time, money, rep­u­ta­tion and en­ergy into this new ven­ture. There are a few tips to im­prove your chances of suc­cess in get­ting this right, it pays to en­sure that you have done your home­work to look at all as­pects of the busi­ness for sale, namely:

1. Iden­tify the op­por­tu­ni­ties and strengths.

2. Look at the risks and prob­lems and how they could be mit­i­gated.

3. Con­sider the value of the busi­ness.

Buy­ing a busi­ness is a lot about in­for­ma­tion gath­er­ing and self-as­sess­ment, mak­ing sure you are pre­pared as the risks are of­ten large.

When look­ing to buy an ex­ist­ing busi­ness there are a few tips to aid in the suc­cess:

1. De­cide what you are look­ing for, based on lo­ca­tion, size, in­dus­try and life­style. These fac­tors will help you to pin­point ex­actly what type of This is likely if you do not have the nec­es­sary cash or have a fi­nan­cial backer. Once a purchase price has been set­tled you will have an idea of the fi­nance re­quire­ments. There are sev­eral op­tions here— busi­ness loans, seller fi­nanc­ing, each with its own pros and cons.

5. Sales agree­ment. This is im­per­a­tive once you have cho­sen a busi­ness, ne­go­ti­ated terms and have fund­ing se­cured. En­sure you have your so­lic­i­tor in­volved and that you un­der­stand the terms of the agree­ment be­fore you sign.

Buy­ing a busi­ness is a mas­sive de­ci­sion, how­ever with the right process and sup­port net­work you can help en­sure the out­come is the right one.

For any fur­ther in­for­ma­tion please con­tact the team at Crowe Hor­wath on (06) 858-5540.

■ This in­for­ma­tion is gen­eral in na­ture and read­ers should seek spe­cial­ist advice be­fore mak­ing fi­nan­cial de­ci­sions.

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