If you're thinking about buying a small business, the most important thing is that you know exactly what you're buying. That's why you need to make sure you understand the business back to front.
Evaluating a business for purchase is complicated and it's always worth investing in professional assistance. So what should you know before buying?
The legal and tax aspects of your potential business are really important. You need to be thinking about these things very early on. Some of the questions you might ask could be:
The performance of the business is obviously essential to your decision to buy. But understanding the health of a business can actually be really complex. Consider the following:
The business' operations and industry should be a significant part of your research – you can't buy a business without understanding this thoroughly.
An accurate audit of business assets means that you can make an accurate valuation and not pay too much.
A comprehensive understanding of expenses and debts ensures that you're not taking on more risk than necessary. It's making sure there's no unpleasant surprises!
Buying a business is something that requires a lot of business expertise and research. You don't have to be a business expert though, that's where we can help you out.
Jensen Ma is an Accredited Immigration Law Specialist with over 20 years experience across immigration, commercial and business law.
Level 7, 257 Collins Street Melbourne VIC 3000
(+613) 9663 8818