Buying a Business
Buying A Business For Sale
Buying a business for sale can be an exciting time and reward you for many years to come. However there can be some complicated and challenging hurdles to overcome first.
This is where CPI Business Sales can help with not only finding the right business for sale to match your budget, lifestyle and skills, but also assist with making the buying process as seamless as possible.
Why buy a business for sale
There are many reasons why you would buy a business for sale, and the following are some typical reasons.
- Freedom to control your own destiny
- Enjoy the fruits of an established clientele, process and staff
- Work in an industry that you are passionate about
- Consolidate within the industry
How to buy a business for sale
There is several ways you can buy a business for sale, each with its own advantages and disadvantages.
- Buy a listed business through a business broker
- Approach a private sale direct
- Register with a business broker on a buyers register
- Engage a “Buyers agent” to find a business for you
What do buyers need to know
There is a lot to consider when looking at a business for sale.
- Does the cash flow and effort required reflect fair value and align to your goals
- How much can you borrow and at what terms
- What is the trading trend of the business and its profits
- Do you have the expertise to run the business
- What is the legal structure you are buying, and what do you need.
What is the buying process
Having an idea of the process involved is important and should include the following milestones.
- Pre-qualify your purchase ability to be able to make an offer
- Sign a confidentiality agreement and obtain an information memorandum
- Negotiate a mutual sale agreement through the business broker
- Engage a solicitor and accountant for contracts and due diligence
- Arrange finance
- Complete pre-settlement conditions such as stock-take
- Implement post-settlement training etc.
Contact CPI Business Sales now for more information