Young business woman hand with pencil writing on notebook. Woman hand with pencil writing on notebook and working at coffee shop.

Small Business Buying

Small business buying is probably the most important and most dangerous purchase any individual will undertake in their adult life.

 

You may ask yourself, “what about buying a house?” Well, the dollar value is also very high but the risk factor is far lower.

If you pay too much for a house it will only be by a few percent and after 2 or 3 years, the market will have caught up and overtaken the purchase price.

However, small business buying is a minefield. If you pay too much for a business, the loan repayment may not be able to be serviced by the lower profits the business is making.

Even worse, if the due diligence is not done well, the small business buy may be fatally flawed and the business may actually drag the buyer into financial quicksand to the point where they become bankrupt and lose not only the business but also the house!

The first rule of small business buying is to invest in expert advice. You need a good accountant to do your due diligence. You need a good lawyer to review the lease, franchise agreement etc, plus you need a business valuation to make sure you do not pay too much and to assist in obtaining bank finance.

Small business buying needs professional assistance. So discuss your small business needs with someone you trust today. 

MORE NEWS STORIES

child and adult holding money jar, donation, saving concept

What Is The Cost Of Selling A Business?

What Is The Cost Of Selling A Business? Here at GMO, there is no concrete cost for selling your business. It depends on a selection of variables including the type of business and the work involved. However, Read more
con11

Get To Know Con Mast

Our team are a diverse group of experienced Business Brokers and/or Business Valuers. So much so, that we thought we better introduce them to you so you can get to know them better.   How long have Read more
Tax inspector investigating financial documents through magnifying glass forensic accounting or financial forensics inspecting offshore company financial papers documents and reports.

Business Sale VS. Company Sale: What is the difference?

As a potential business purchaser, buying a company and buying a business may sound similar, however, there are aspects that make the two options quite different. Business Sale When compared to a company sale, a business sale is generally Read more