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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. 

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